Wall Street analysts forecast that Rapid7 (RPD) will report quarterly earnings of $0.35 per share in its upcoming release, pointing to a year-over-year decline of 36.4%. It is anticipated that revenues will amount to $208.45 million, exhibiting an increase of 1.6% compared to the year-ago quarter.
Over the last 30 days, there has been an upward revision of 1.9% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
That said, let's delve into the average estimates of some Rapid7 metrics that Wall Street analysts commonly model and monitor.
According to the collective judgment of analysts, 'Revenue- Professional services' should come in at $6.80 million. The estimate indicates a change of -16.9% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Products' at $202.25 million. The estimate indicates a change of +2.7% from the prior-year quarter.
The combined assessment of analysts suggests that 'Annualized recurring revenue' will likely reach $840.83 billion. The estimate compares to the year-ago value of $807.20 billion.
Analysts' assessment points toward 'Number of customers' reaching 11,631. The estimate is in contrast to the year-ago figure of 11,462.
Based on the collective assessment of analysts, 'ARR per customer' should arrive at $72,342.91. Compared to the current estimate, the company reported $70,400 in the same quarter of the previous year.
Analysts forecast 'Non-Gaap Gross Profit- Products' to reach $152.07 million. The estimate compares to the year-ago value of $148.80 million.
View all Key Company Metrics for Rapid7 here>>>
Over the past month, Rapid7 shares have recorded returns of -0.9% versus the Zacks S&P 500 composite's +11.3% change. Based on its Zacks Rank #3 (Hold), RPD will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Rapid7, Inc. (RPD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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