Core Insights - SentinelOne reported quarterly earnings of $0.02 per share, matching the Zacks Consensus Estimate, compared to break-even earnings per share a year ago [1] - The company posted revenues of $229.03 million for the quarter ended April 2025, exceeding the Zacks Consensus Estimate by 0.44% and up from $186.35 million year-over-year [2] - The stock has underperformed, losing about 9.6% since the beginning of the year, while the S&P 500 gained 0.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.03 on revenues of $245.47 million, and for the current fiscal year, it is $0.19 on revenues of $1.01 billion [7] - The estimate revisions trend for SentinelOne is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Security industry, to which SentinelOne belongs, is currently ranked in the top 13% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another competitor in the same industry, CrowdStrike Holdings, is expected to report quarterly earnings of $0.66 per share, reflecting a year-over-year decline of 29%, with revenues anticipated to be $1.1 billion, up 19.9% from the previous year [9][10]

Company Performance - Okta reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and up from $0.65 per share a year ago, representing an earnings surprise of 11.69% [1] - The company posted revenues of $688 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 1.22%, and an increase from $617 million year-over-year [2] - Okta has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Stock Movement and Outlook - Okta shares have increased approximately 57% since the beginning of the year, contrasting with a -1.3% decline in the S&P 500 [3] - The future performance of Okta's stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][5] - Current consensus EPS estimate for the upcoming quarter is $0.79 on revenues of $706.57 million, and for the current fiscal year, it is $3.19 on revenues of $2.86 billion [7] Industry Context - The Security industry, to which Okta belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, Zscaler, is expected to report quarterly earnings of $0.75 per share, reflecting a year-over-year decline of 14.8%, with revenues projected at $666.11 million, up 20.4% from the previous year [9][10]

Core Viewpoint - SentinelOne is positioned for stable growth in fiscal 2026, with expected revenue of $228 million for the first quarter, reflecting a 22% year-over-year increase, despite some near-term challenges related to the retirement of a legacy product [5][12][19]. Financial Performance - Fiscal 2025 ended strongly for SentinelOne, with Q4 revenue rising 29% year-over-year to $225.5 million, surpassing expectations [1][2]. - The company achieved a net new Annual Recurring Revenue (ARR) of $60 million, bringing total ARR to $920 million, a 27% increase year-over-year [2]. - Gross margin for Q4 was robust, and operating margin exceeded guidance by over 400 basis points due to effective cost management [2][13]. Earnings Estimates - The Zacks Consensus Estimate for Q1 fiscal 2026 EPS remains at 2 cents per share, with revenue expectations set at $228 million, indicating a 22.4% year-over-year growth [5][12]. - For fiscal 2026, revenue growth is projected at 22.7%, with a significant 280% year-over-year improvement in the bottom line anticipated [6][7]. Market Position and Strategy - SentinelOne is leveraging AI-driven solutions, with over 300 deals signed in the last quarter, indicating strong market traction [11][20]. - More than 40% of large enterprise customers are now utilizing three or more modules of the Singularity platform, showcasing effective cross-selling and customer engagement [11][20]. Valuation and Stock Performance - The company's stock has underperformed compared to industry peers, with a 2.8% decline over the past three months, while the broader industry saw an 8.3% increase [14][15]. - Currently, SentinelOne trades at a forward 12-month price-to-sales (P/S) ratio of 6.04X, slightly above the sector average of 6.12X, but below its three-year average [18]. Long-term Outlook - Despite short-term headwinds, the long-term investment case for SentinelOne remains strong, driven by sustained platform adoption, AI differentiation, and improving margins [21][22]. - The company is on track to exceed $1 billion in revenues and ARR this fiscal year, supported by innovation and operational discipline [21][22].

Group 1 - Wireless Ronin Technologies Inc. (CREX) is currently outperforming its peers in the Computer and Technology sector, with a year-to-date return of approximately 18% compared to an average loss of 2.6% for the sector [4] - The Zacks Rank for Wireless Ronin Technologies Inc. is 1 (Strong Buy), indicating strong potential for future performance based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for CREX's full-year earnings has increased by 46% in the past quarter, reflecting improved analyst sentiment and a stronger earnings outlook [4] Group 2 - Wireless Ronin Technologies Inc. is part of the Internet - Software industry, which consists of 167 companies and currently ranks 50 in the Zacks Industry Rank [6] - The Internet - Software industry has seen a year-to-date gain of about 5.3%, indicating that CREX is performing better than its industry peers [6] - In comparison, another stock in the Computer and Technology sector, CyberArk (CYBR), has a year-to-date return of 12.2% and has also received a Zacks Rank of 1 (Strong Buy) [5][7]

Core Viewpoint - Okta is expected to report strong fiscal first-quarter 2026 results, with anticipated non-GAAP earnings of 76-77 cents per share and revenues between $678-$680 million, reflecting a 10% year-over-year growth [1][2]. Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for earnings has remained steady at 77 cents per share, indicating an 18.46% year-over-year growth [2]. - The consensus for revenues is pegged at $679.73 million, representing a 10.17% increase from the previous year [2]. Group 2: Customer Growth and Product Portfolio - Okta's expanding product portfolio, particularly in security and identity governance, is expected to drive client acquisition and top-line growth, with 19,650 customers and $4.215 billion in remaining performance obligations reported at the end of fiscal Q4 2025 [3]. - The number of customers with over $100 thousand in Annual Contract Value increased by 7% year-over-year to 4,800 [3]. Group 3: New Product Momentum - Continued momentum from new products such as Okta Identity Governance and Privileged Access is expected to contribute positively to the upcoming quarter, with over 20% of fiscal Q4 bookings coming from these offerings [4]. - Okta Identity Governance has rapidly gained traction, with over 1,300 customers contributing more than $100 million in annual contract value within two years of its launch [5]. Group 4: Partner Ecosystem - Okta benefits from a robust partner ecosystem, including major players like Amazon Web Services, Google, and Salesforce, which enhances its security capabilities [6][7]. - More than 70% of deals in fiscal Q4 2025 were influenced by partners, with Okta surpassing $1 billion in total contract value through its partnership with AWS [7]. Group 5: Stock Performance - Okta shares have outperformed the Zacks Computer & Technology sector, surging 54.9% year-to-date, while the sector has declined by 2% [8]. Group 6: Competitive Landscape - Despite strong product momentum, Okta faces stiff competition from CyberArk and Microsoft, both of which are expanding their presence in the identity and access management space [14]. - Microsoft's Entra identity offering serves over 900 million monthly active users, highlighting the competitive pressure in the market [15].

Core Viewpoint - Wall Street anticipates a year-over-year decline in Zscaler's earnings despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Zscaler is expected to report earnings of $0.75 per share, reflecting a year-over-year decrease of 14.8%, while revenues are projected to be $666.11 million, an increase of 20.4% from the previous year [3]. - The earnings report is scheduled for May 29, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 53.85% over the last 30 days, indicating a bearish sentiment among analysts regarding Zscaler's earnings prospects [4][10]. - Zscaler's Earnings ESP stands at -15.68%, suggesting that the Most Accurate Estimate is lower than the consensus estimate, complicating predictions of an earnings beat [11]. Historical Performance - Zscaler has consistently beaten consensus EPS estimates in the past four quarters, with a notable surprise of +13.04% in the last reported quarter [12][13]. Industry Comparison - Okta, another player in the security industry, is expected to report earnings of $0.77 per share, indicating a year-over-year increase of 18.5%, with revenues projected at $679.73 million, up 10.2% from the previous year [17]. - Okta's consensus EPS estimate has been revised down by 0.3% recently, resulting in an Earnings ESP of -0.93%, combined with a Zacks Rank of 4 (Sell), making predictions of an earnings beat challenging [18].

Core Insights - Palo Alto Networks (PANW) reported third-quarter fiscal 2025 non-GAAP earnings of 80 cents per share, exceeding the Zacks Consensus Estimate by 3.9% and reflecting a year-over-year improvement of 21.2% [1] - The company's revenues for the third quarter reached $2.29 billion, surpassing the Zacks Consensus Estimate by 0.57% and increasing from $1.98 billion in the same quarter last year [1][2] Financial Performance - Product revenues increased by 15.8% year over year to $452.7 million, making up 19.8% of total revenues, while Subscription and Support revenues grew by 15.2% to $1.84 billion, representing 80.2% of total revenues [3] - Non-GAAP gross profit rose to $1.74 billion, a 13% increase year over year, with a non-GAAP gross margin of 76.0%, down 60 basis points [5] - Non-GAAP operating income increased by 23.5% to $627.1 million, with an operating margin of 27.4%, up 180 basis points compared to the previous year [5] Deferred Revenues and Future Guidance - Deferred revenues at the end of the fiscal second quarter were $5.76 billion, and Remaining Performance Obligation increased to $13.5 billion, up 19% year over year [4] - For fiscal 2025, PANW raised its revenue guidance to between $9.17 billion and $9.19 billion, compared to the previous range of $9.14 billion to $9.19 billion [6] - The company projects non-GAAP earnings per share for fiscal 2025 in the range of $3.26 to $3.28, with an expected operating margin of 28.2% to 28.5% [7] Fourth Quarter Projections - For the fourth quarter of fiscal 2025, PANW anticipates revenues between $2.49 billion and $2.51 billion, indicating year-over-year growth of 14-15% [8] - Non-GAAP earnings are projected to be in the range of 87 to 89 cents per share, reflecting a year-over-year improvement of 17.14% [9]

Core Insights - Palo Alto Networks (PANW) reported quarterly earnings of $0.80 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and up from $0.66 per share a year ago, representing an earnings surprise of 3.90% [1] - The company achieved revenues of $2.29 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.57%, and an increase from $1.98 billion year-over-year [2] - The stock has gained approximately 6.8% since the beginning of the year, outperforming the S&P 500's gain of 1.4% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.86 on revenues of $2.49 billion, and for the current fiscal year, it is $3.22 on revenues of $9.16 billion [7] - The estimate revisions trend for Palo Alto has been unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Security industry, to which Palo Alto belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Cemtrex, Inc. (CETX) has demonstrated significant financial improvement in Q2 fiscal 2025, with substantial revenue growth and a shift to profitability, driven by strong performance in its Security segment and effective operational management [2][8][9]. Financial Performance - Revenues increased by 58.8% year over year to $27.3 million from $17.2 million, with net income rising to $8.4 million from a net loss of $1.5 million [2][3]. - Basic and diluted earnings per share improved to $4.10 compared to a loss of $3,054.05 per share in the previous year [3]. - Gross profit rose 75.3% year over year to $12.2 million, with gross margin expanding to 45% from 40% [5]. Segment Performance - The Security segment saw a 110% revenue increase to $16.9 million, primarily due to a $10.4 million government order and demand for AI-driven products [3]. - The Industrial Services segment reported a 13.2% revenue increase to $10.3 million, driven by infrastructure and industrial projects [4]. Operating Efficiency - Operating income turned positive at $4.6 million compared to a loss of $1 million in the prior year, with operating expenses declining by 5.3% to $7.5 million [2][5]. - Cash flow from operating activities became positive, generating $1.6 million compared to a cash burn of $2.8 million a year earlier [7]. Balance Sheet Strength - Stockholders' equity improved to $6.4 million from $4.7 million, with inventory levels decreasing to $6.1 million [6]. - Long-term debt stood at $9.5 million, with total liabilities at $39.5 million [7]. Management Insights - CEO Saagar Govil described the quarter as an "inflection point," highlighting robust revenue growth and margin gains as validation of the company's strategy [8]. - Management expressed optimism for continued growth and profitability improvements, supported by a growing order backlog [11]. Strategic Developments - The company reported a $21.5 million gain related to Series A warrant exercises, enhancing liquidity for strategic initiatives [12]. - No major acquisitions or restructuring activities were disclosed during the quarter [12].

Company Performance - Zscaler's stock closed at $252.57, reflecting a +0.43% change from the previous session, outperforming the S&P 500's daily gain of 0.09% [1] - Over the past month, Zscaler shares have increased by 25.07%, surpassing the Computer and Technology sector's gain of 18.89% and the S&P 500's gain of 13.05% [2] Upcoming Financial Results - Zscaler is set to announce its earnings on May 29, 2025, with analysts expecting earnings of $0.75 per share, indicating a year-over-year decline of 14.77% [3] - The consensus estimate for revenue is $666.11 million, representing a 20.41% increase compared to the same quarter of the previous year [3] Full-Year Estimates - The 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 [4] Analyst Projections - Recent shifts in analyst projections for Zscaler should be monitored, as positive estimate revisions are seen as a good sign for the company's business outlook [5] - Estimate alterations are linked to stock price performance, and the Zacks Rank model incorporates these changes for actionable insights [6] Zacks Rank and Valuation - Zscaler currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 18.31% in the past month [7] - The company is trading with a Forward P/E ratio of 82.26, which is a premium compared to the industry's average Forward P/E of 71.1, and has a PEG ratio of 5.96, higher than the security industry's average PEG ratio of 3.15 [8] Industry Context - The Security industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 51, placing it in the top 21% of over 250 industries [9]