SolarWinds (SWI) Tops Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - SolarWinds reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and up from $0.21 per share a year ago, representing an earnings surprise of 18.18% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - SolarWinds posted revenues of $193.25 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.51%, and up from $185.03 million year-over-year [2] Group 2: Stock Performance and Outlook - SolarWinds shares have declined approximately 4.5% since the beginning of the year, while the S&P 500 has gained 15.8% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $194.23 million, and for the current fiscal year, it is $1.03 on revenues of $778.91 million [7] Group 3: Industry Context - The Internet - Software industry, to which SolarWinds belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact SolarWinds' stock performance [5]