Data security company Varonis Systems (NASDAQ: VRNS) will be reporting earnings this Tuesday after market close. Here’s what to expect.
Varonis Systems beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $152.2 million, up 16.7% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is Varonis Systems a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Varonis Systems’s revenue to grow 12.2% year on year to $166.1 million, slowing from the 21.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Varonis Systems has missed Wall Street’s revenue estimates twice over the last two years.
With Varonis Systems being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for cybersecurity stocks. However, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Varonis Systems is up 4.6% during the same time and is heading into earnings with an average analyst price target of $64.45 (compared to the current share price of $62).
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