The Zacks Security industry is experiencing robust demand for cybersecurity products, driven by the increasing need for secure networks and cloud-based applications, especially with the rise of hybrid work environments. This surge in demand is largely due to a significant increase in data breaches, prompting companies to seek comprehensive IT security solutions. Additionally, the growing need for privileged access security, fueled by digital transformation and cloud migration strategies, is further boosting ...

Core Viewpoint - Qualys reported mixed Q2 2024 results with earnings exceeding estimates but revenues slightly missing expectations, indicating a significant year-over-year improvement in both metrics [2][3]. Financial Performance - Non-GAAP earnings for Q2 2024 were $1.52 per share, surpassing the Zacks Consensus Estimate of $1.31 and exceeding previous guidance of $1.27-$1.35 per share [2]. - Year-over-year earnings increased by 19.7% from $1.27 per share [3]. - Revenues rose 8.4% year-over-year to $148.71 million, though it fell short of the Zacks Consensus Estimate of $148.76 million [4]. Revenue Breakdown - Sales from channel partners grew by 17%, while direct sales only increased by 2%, with channel partners contributing 46% to total revenues [5]. - U.S. sales grew by 5%, contributing approximately 58% to total revenues, while international sales increased by 14%, accounting for 42% of total revenues [6]. Profitability Metrics - Non-GAAP gross profit increased by 11% year-over-year to $124.9 million, with a gross margin expansion of 200 basis points to 84% [7]. - Non-GAAP operating income grew by 11% to $65.9 million, and the operating margin improved by 100 basis points to 44% [7]. - Adjusted EBITDA rose by 6% to $69.9 million, with a slight contraction in the adjusted EBITDA margin by 100 basis points to 47% [7]. Cash Flow and Balance Sheet - As of the end of Q2, Qualys had cash and cash equivalents totaling $393.2 million [8]. - The company generated operating cash flow of $49.8 million and free cash flow of $48.8 million during Q2 2024 [8]. Guidance - For Q3 2024, Qualys expects revenues between $149.8 million and $151.8 million, indicating a year-over-year growth of 5-7% [9]. - For the full year 2024, the revenue guidance is adjusted to a range of $597.5-$601.5 million, down from previous guidance, while non-GAAP earnings per share guidance has been raised to $5.46-$5.62 [10]. Market Sentiment - Estimates for Qualys have trended upward, with a consensus estimate shift of 13.33% in the past month [11]. - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [13].

Group 1: Market Overview - The stock market is currently under bullish control, with the S&P 500 and Nasdaq trading above their 21-day and 50-day moving averages after a significant two-week recovery [1] - Investors are optimistic about tech-driven earnings growth and potential interest rate cuts, with the Fed's July minutes indicating a dovish cycle starting at the next FOMC meeting [2] Group 2: Qualys (QLYS) - Qualys provides cloud-based cybersecurity, compliance, and IT solutions, serving a diverse customer base that includes enterprises and governments, which helps it remain resilient to spending patterns [3] - The company has faced challenges due to slowing sales outlook after years of double-digit revenue growth, with a projected sales increase of 8% in FY24 and FY25, reaching $649 million [5][6] - Qualys is expected to grow adjusted earnings by 6% in 2024 and 4% in 2025, with management providing positive EPS guidance following Q2 results [6] - Despite a 40% decline since late 2023, Qualys has seen a 395% increase over the past decade, outperforming the Zacks Tech sector [7] - The stock is currently trading at its lowest valuation in 10 years at 31.1X forward 12-month earnings, representing a 90% discount to its 10-year highs [8] Group 3: Celestica Inc. (CLS) - Celestica is a leader in design, manufacturing, and supply chain solutions, servicing various sectors including communications, aerospace, and healthcare technology [9][10] - The company expanded its revenue by 29% in 2022 and 10% in FY23, with projections of 19% revenue growth this year and 9% in 2025, reaching $10.28 billion [11] - Celestica is expected to achieve 50% adjusted EPS growth this year and 9% next year, following a strong performance in the previous four years [11][12] - The stock has increased by 685% over the past five years, significantly outperforming the tech sector, although it is currently trading 15% below its mid-July highs [13] - Celestica's stock is trading at a 43% discount to the wider Zacks Tech sector, at 15.6X forward 12-month earnings [14]

Investors might want to bet on Qualys (QLYS) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Since a changing earnings ...

Qualys (QLYS) posted mixed second-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. However, both top and bottom lines marked a significant year-over-year improvement. The company reported non-GAAP earnings of $1.52 per share, which beat the Zacks Consensus Estimate of $1.31. Qualys' second-quarter non-GAAP earnings also came well ahead of its previous guidance of $1.27-$1.35 per share. The bottom line increased 19.7% from the year-ago quarter's earn ...

Qualys (QLYS) came out with quarterly earnings of $1.52 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.27 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 16.03%. A quarter ago, it was expected that this maker of security-analysis software would post earnings of $1.31 per share when it actually produced earnings of $1.45, delivering a surprise of 10.69%. Over the last four qu ...

Revenue Growth of 8% Year-Over-Year GAAP EPS: $1.17; Non-GAAP EPS: $1.52 FOSTER CITY, Calif., Aug. 6, 2024 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security and compliance solutions, today announced financial results for the second quarter ended June 30, 2024. For the quarter, the Company reported revenues of $148.7 million, net income under United States Generally Accepted Accounting Principles ("U.S. GAAP") of $43.8 million, non-GAAP net income of $56.9 ...

New solutions – TruRisk Mitigate and Isolate - compliment patch management helping customers reduce security risk while lowering operational risk with extensive coverage for recent CISA KEV Qualys TruRisk EliminateQualys TruRisk Eliminate Qualys TruRisk Eliminate equips security and IT teams with powerful tools to enhance cybersecurity resilience by addressing critical vulnerabilities with or without deploying a patch. This solution reduces friction in current processes, enabling CISOs and CIOs to effective ...

FOSTER CITY, Calif., July 23, 2024 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a pioneer and leading provider of disruptive cloud-based IT, security and compliance solutions, today announced that the company will report its financial results for the second quarter 2024 after the market closes on Tuesday, August 6, 2024. Qualys will host a conference call and live webcast to discuss its second quarter 2024 financial results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) on Tuesday, August 6, 2024. To ac ...

FOSTER CITY, Calif., June 11, 2024 /PRNewswire/ -- Qualys, Inc. (NASDAQ: QLYS), a leading provider of disruptive cloud-based IT, security, and compliance solutions, announced that Qualys Vulnerability Management, Detection and Response (VMDR) was named the winner of the Best Vulnerability Management Solution category at the 2024 SC Awards Europe. Qualys VMDR continues to garner industry recognition including winning the 2023 SC Awards Europe and ranking #1 in the 2022 SC Media Awards Best Vulnerability Mana ...