In its upcoming report, Okta (OKTA) is predicted by Wall Street analysts to post quarterly earnings of $0.77 per share, reflecting an increase of 18.5% compared to the same period last year. Revenues are forecasted to be $679.73 million, representing a year-over-year increase of 10.2%.
The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link 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.
Bearing this in mind, let's now explore the average estimates of specific Okta metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Revenue- Subscription' should come in at $660.72 million. The estimate suggests a change of +9.6% year over year.
The average prediction of analysts places 'Revenue- Professional services and other' at $12.86 million. The estimate suggests a change of -8.1% year over year.
The combined assessment of analysts suggests that 'Current remaining performance obligations (cRPO)' will likely reach $2.19 billion. Compared to the present estimate, the company reported $1.95 billion in the same quarter last year.
The consensus among analysts is that 'Remaining performance obligations' will reach $4.02 billion. Compared to the current estimate, the company reported $3.36 billion in the same quarter of the previous year.
The consensus estimate for 'Gross margin- Subscription' stands at 83.0%. Compared to the present estimate, the company reported 78% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Total Customers' of 20,001. Compared to the current estimate, the company reported 19,100 in the same quarter of the previous year.
View all Key Company Metrics for Okta here>>>
Over the past month, shares of Okta have returned +33.1% versus the Zacks S&P 500 composite's +12.7% change. Currently, OKTA carries a Zacks Rank #4 (Sell), suggesting that it may underperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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Okta, Inc. (OKTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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