Categories Earnings, LATEST, Technology

SecureWorks stock rallies on improved Q2 results, guidance

SecureWorks (SCWX), a leading cybersecurity solutions provider, Wednesday said its second-quarter net loss narrowed, helped by strong revenue growth. The better than expected results and strong guidance for the third quarter triggered a stock rally in the premarket.

On an adjusted basis, the Atlanta, Georgia-based company reported a net loss of $0.09 million or $0.01 per share for the second quarter, compared to a loss of $3.5 million or $0.04 per share a year earlier. Analysts were looking for a wider loss. Reported loss was $0.12 per share, compared to a loss of $0.13 per share in the second quarter of 2018.

Revenues moved up 10.8% year-over-year to $128.8 million during the three-month period when monthly recurring revenue rose by 12%.

The better than expected results and strong guidance for the third quarter triggered a stock rally in the premarket

“I am pleased with our progress and remain excited about the significant opportunity for further growth and productivity gains as we continue to execute against our objectives,” said CEO Michael Cote.

For the third quarter, the company expects revenues in the range of $130 million to $131 million and sees a net loss of $0.16-$0.17 per share. On an adjusted basis, the estimated loss is between $0.05 per share and $0.06 per share.

Revenues are estimated to be between $518 million and $520 million for the whole of 2019 when the bottom-line is expected to remain in the negative territory, with a loss ranging from $0.59 per share to $0.61 per share. Full-year adjusted loss is forecast between $0.15 per share and $0.17 per share.

SecureWorks has registered operating loss continuously in the recent quarters as muted revenue growth squeezed margins.  Increasing competition, especially from startups, has also put pressure on margins.

Over the past twelve months, the company’s shares gained more than 12%, hitting a two-year high in July. The stock, which closed the last trading session down 9%, gained about 4% in premarket trading Wednesday following the earnings report.

RELATED: Microsoft uncovers Russian cyber attacks

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top