Varonis Systems (VRNS) reported break-even quarterly earnings per share versus the Zacks Consensus Estimate of a loss of $0.05. This compares to loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this data-management software company would post earnings of $0.14 per share when it actually produced earnings of $0.18, delivering a surprise of 28.57%.Over the last four quarters ...

Core Viewpoint - Fortinet is expected to report first-quarter 2025 results on May 7, with anticipated revenues between $1.5 billion and $1.56 billion, and non-GAAP earnings per share in the range of 52-54 cents, indicating a positive growth trajectory despite some near-term challenges [1][5][21]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $1.54 billion, reflecting a year-over-year growth of 13.54%, while the consensus for earnings is 53 cents per share, indicating a year-over-year increase of 23.26% [1]. - The Americas revenue estimate is $635 million, showing a decline of 4.65% year-over-year, while Asia Pacific and Japan revenues are expected to grow by 2% to $308 million. European, Middle Eastern, and African revenues are projected to decrease by 13.3% to $600 million [11][12]. Earnings Surprise History - Fortinet has a history of exceeding earnings estimates, with a 23.33% surprise in the last reported quarter and an average surprise of 24.76% over the last four quarters [3]. Growth Drivers - Key growth drivers include SASE and AI-led security, with FortiSASE ARR growing 96% year-over-year and pipeline activity increasing by 90%. Over 70% of large enterprise customers are utilizing Fortinet's SD-WAN, indicating strong future upselling potential [6][10]. - The company is also experiencing a hardware refresh cycle, particularly among large enterprises, which is expected to contribute to growth in the second half of 2025 [7]. Challenges and Market Conditions - Tariff changes and economic uncertainty may limit first-quarter upside, with noted weaknesses in Canada, Latin America, and the U.S. federal space due to policy and budget delays [8][21]. - Integration of recent acquisitions is expected to reduce operating margins by 40 basis points, and infrastructure spending is projected to rise to $80-$100 million, impacting short-term margins [9][21]. Competitive Landscape - Despite fierce competition from companies like Palo Alto Networks, Zscaler, and CrowdStrike, Fortinet's focus on reducing complexity and expanding sales capacity positions it for long-term growth [10][21]. Stock Performance and Valuation - Fortinet's shares have gained 12.4% year-to-date, outperforming the Computer and Technology sector and the S&P 500 index [13]. - The stock is trading at a significant premium, with a Price/Book ratio of approximately 54.66 compared to the industry's 25.36, indicating high growth expectations from investors [17]. Investment Considerations - While Fortinet shows strong product momentum and demand for SASE solutions, investors are advised to maintain a hold stance due to potential near-term pressures from tariffs, budget delays, and competition [21][22].

Core Viewpoint - Fortinet (FTNT) is positioned well to continue its trend of beating earnings estimates, with a strong history of performance in the Zacks Security industry [1][5]. Earnings Performance - In the most recent quarter, Fortinet reported earnings of $0.74 per share, exceeding the expected $0.60 per share, resulting in a surprise of 23.33% [2]. - For the previous quarter, Fortinet's earnings were $0.63 per share against an expectation of $0.51 per share, leading to a surprise of 23.53% [2]. Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for Fortinet, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [5][8]. - The current Earnings ESP for Fortinet is +3.77%, suggesting analysts have recently become more optimistic about the company's earnings prospects [8]. Zacks Rank and Success Rate - Fortinet holds a Zacks Rank of 3 (Hold), which, when combined with a positive Earnings ESP, indicates a high likelihood of a positive surprise, with historical data showing nearly 70% success in such cases [6][8]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions before earnings releases [7].

Core Insights - Zscaler's stock has increased by 18.2% in the past month, outperforming the Zacks Security industry's return of 14.8%, leading investors to consider whether to hold or take profits [1] Group 1: Performance and Demand - The demand for Zscaler's cybersecurity solutions is strong, driven by increasing threats such as nation-state cyber warfare and ransomware attacks [1] - Zscaler achieved a 12-month trailing dollar-based retention rate of 115% in Q2 fiscal 2025, supported by larger bundle sales and robust upsells [2] - Remaining Performance Obligations increased by 28% year over year, indicating strong future revenue commitments [2] Group 2: Government Sector Expansion - Zscaler is enhancing its GovCloud solutions to comply with government security standards, expanding its presence among government agencies [3] - The company added one cabinet-level agency client in Q4, bringing its total to 13 out of 15 U.S. cabinet-level agencies, indicating growth potential in the public sector [4] Group 3: AI Integration and Partnerships - Zscaler is implementing generative AI in its offerings, collaborating with NVIDIA and CrowdStrike to enhance its cybersecurity solutions [5][6] - The integration of NVIDIA's AI technologies strengthens Zscaler's Zero Trust Security model, improving its capabilities in threat intelligence and real-time insights [6] Group 4: Financials and Investments - Zscaler's revenue for fiscal 2025 is projected to increase by 22.2% year over year, reflecting strong demand for its products [8] - Non-GAAP sales and marketing expenses rose by 12.9% year over year to $237.5 million, accounting for 36.7% of Q2 fiscal 2025 revenues, indicating aggressive market strategies [10] - R&D expenses surged by 34.7% year over year to $105 million, representing 16.2% of total revenues, highlighting the company's commitment to innovation [11] Group 5: Valuation Concerns - Zscaler's premium valuation is evident with a Forward 12-month P/S ratio of 11.56X, significantly higher than the sector average of 5.71X, raising concerns about overvaluation [12] Group 6: Investment Recommendation - Despite the premium valuation, Zscaler's AI innovations and strong position in the Zero Trust security space suggest it is a stock worth retaining, currently holding a Zacks Rank 3 (Hold) [15]

The latest trading session saw Palo Alto Networks (PANW) ending at $186.27, denoting a -0.35% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 0.63%. Meanwhile, the Dow experienced a rise of 0.21%, and the technology-dominated Nasdaq saw an increase of 1.52%.Coming into today, shares of the security software maker had gained 7.94% in the past month. In that same time, the Computer and Technology sector gained 1.66%, while the S&P 500 lost 0.7%.Market part ...

Core Viewpoint - CyberArk (CYBR) has been trending on Zacks.com, indicating potential interest in its stock performance in the near term [1] Earnings Estimate Revisions - CyberArk is expected to report earnings of $0.79 per share for the current quarter, reflecting a year-over-year increase of +5.3% [5] - The consensus earnings estimate for the current fiscal year is $3.65, indicating a +20.5% change from the previous year, with a recent upward revision of +9.6% [5] - For the next fiscal year, the earnings estimate is $4.65, suggesting a +27.3% increase from the prior year, with a slight upward revision of +0.7% [6] - The Zacks Rank for CyberArk is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [7] Revenue Growth Forecast - The consensus sales estimate for the current quarter is $305.66 million, representing a year-over-year increase of +38% [11] - For the current fiscal year, the revenue estimate is $1.31 billion, indicating a +31.3% change, while the next fiscal year's estimate is $1.57 billion, reflecting a +19.1% change [11] Last Reported Results and Surprise History - In the last reported quarter, CyberArk achieved revenues of $314.38 million, a +40.9% year-over-year increase, and an EPS of $0.80, slightly down from $0.81 a year ago [12] - The company exceeded the Zacks Consensus Estimate for revenues by +4.43% and for EPS by +12.68% [12] - CyberArk has consistently beaten consensus EPS and revenue estimates over the last four quarters [13] Valuation - CyberArk is graded F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [17] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued or undervalued [15][16] Bottom Line - The information presented suggests that CyberArk may outperform the broader market in the near term, supported by its Zacks Rank 2 [18]

Company Overview - Okta (OKTA) shares increased by 7.4% to close at $112.54, supported by strong trading volume, contrasting with a 0.4% loss over the past four weeks [1] - The company is experiencing robust demand for its identity security solutions, driven by product innovation and increased customer adoption of offerings like Okta Identity Governance [1] Earnings Expectations - Okta is projected to report quarterly earnings of $0.77 per share, reflecting an 18.5% year-over-year increase, with revenues expected to reach $679.73 million, up 10.2% from the previous year [2] - The consensus EPS estimate for Okta has remained stable over the last 30 days, indicating that stock price movements may not sustain without earnings estimate revisions [3] Industry Context - Okta is part of the Zacks Security industry, which includes other companies like Fortinet (FTNT), whose stock closed 1.5% higher at $104.21, with a 6.6% return over the past month [3] - Fortinet's consensus EPS estimate has seen a slight decrease of 0.2% to $0.53, representing a 23.3% increase from the previous year [4]

Company Overview - NAPCO Security Technologies, Inc. is a leading designer and manufacturer of high-tech electronic security devices and services, including intrusion, fire alarm, access control, and locking systems [3] - The company is also a prominent provider of school safety solutions and operates through four divisions: NAPCO and three wholly owned subsidiaries: Alarm Lock, Continental Instruments, and Marks USA [3] - NAPCO's products are widely installed by security professionals across various sectors, including commercial, industrial, institutional, residential, and government applications [3] Financial Results Announcement - NAPCO Security Technologies will release its financial results for the Fiscal Third Quarter 2025, which ended on March 31, 2025, on May 5, 2025, before the market opens [1] - Following the financial results announcement, a conference call for analysts and investors is scheduled for 11 A.M. ET on the same day [1] Investor Participation - The conference call will be webcast, and interested parties can participate via the Investor Relations section of the company's website or by dialing specific phone numbers [2] - A replay of the webcast will also be available on the company's Investor Relations website [2]

Company Overview - Zscaler (ZS) closed at $219.86, with a +1.99% change from the previous day, outperforming the S&P 500's daily gain of 0.06% [1] - Over the past month, Zscaler shares gained 4.07%, contrasting with the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% [1] Earnings Expectations - The upcoming earnings release is expected to show an EPS of $0.75, a 14.77% decrease compared to the same quarter last year [2] - Revenue is forecasted to be $666.11 million, indicating a 20.41% growth year-over-year [2] Full-Year Estimates - Full-year Zacks Consensus Estimates predict earnings of $3.06 per share and revenue of $2.65 billion, reflecting year-over-year changes of -4.08% and +22.18%, respectively [3] - Recent revisions to analyst forecasts are crucial as they reflect near-term business trends, with positive changes indicating analyst optimism [3] Valuation Metrics - Zscaler's Forward P/E ratio is 70.56, which is higher than the industry average of 63.04, indicating a premium valuation [6] - The current PEG ratio stands at 5.11, compared to the Security industry's average PEG ratio of 3.2 [6] Industry Context - The Security industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 160, placing it in the bottom 36% of over 250 industries [7] - The Zacks Industry Rank assesses the performance of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Performance - Palo Alto Networks (PANW) closed at $179.02, reflecting a +1.69% change from the previous session, outperforming the S&P 500's daily gain of 0.74% [1] - Over the last month, PANW shares increased by 0.92%, while the Computer and Technology sector declined by 6.23% and the S&P 500 fell by 4.77% [1] Upcoming Earnings Expectations - Analysts expect Palo Alto Networks to report earnings of $0.77 per share, representing a year-over-year growth of 16.67% [2] - Revenue is anticipated to be $2.27 billion, indicating a 14.62% increase compared to the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are projected at $3.22 per share and revenue at $9.16 billion, reflecting changes of +13.38% and +14.13% respectively from the previous year [3] - Recent analyst estimate revisions suggest optimism regarding the company's business and profitability [3] Analyst Rating System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that stocks rated 1 have delivered an average annual return of +25% since 1988 [5] - Currently, Palo Alto Networks holds a Zacks Rank of 3 (Hold) [5] Valuation Metrics - Palo Alto Networks is trading at a Forward P/E ratio of 54.61, which is lower than the industry average of 61.7 [6] - The company's PEG ratio stands at 2.73, compared to the industry average PEG ratio of 3.17 [6] Industry Context - The Security industry is part of the Computer and Technology sector, which has a Zacks Industry Rank of 72, placing it in the top 30% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]