Red Violet, Inc. (RDVT) Tops Q2 Earnings and Revenue Estimates

Group 1: Earnings Performance - Red Violet, Inc. reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.19 per share, and up from $0.10 per share a year ago, representing an earnings surprise of 47.37% [1] - The company posted revenues of $19.06 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 8.71%, compared to $14.68 million in the same quarter last year [2] - Over the last four quarters, Red Violet has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Red Violet shares have increased approximately 13.9% since the beginning of the year, outperforming the S&P 500's gain of 9.9% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for investors [4] - The current consensus EPS estimate for the coming quarter is $0.22 on revenues of $18.22 million, and $0.70 on revenues of $70.4 million for the current fiscal year [7] Group 3: Industry Context - The Internet - Software and Services industry, to which Red Violet belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The Zacks Rank for Red Violet is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]