SecureWorks (NASDAQ:SCWX) will release its quarterly earnings report on Wednesday, 2024-12-04. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate SecureWorks to report an earnings per share (EPS) of $0.00.
The market awaits SecureWorks's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Past Earnings Performance
In the previous earnings release, the company missed EPS by $0.01, leading to a 6.29% increase in the share price the following trading session.
Here's a look at SecureWorks's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.01 | -0.01 | -0.03 | -0.07 |
| EPS Actual | 0 | 0.05 | 0.08 | 0 |
| Price Change % | 6.0% | -7.000000000000001% | 1.0% | -2.0% |
Stock Performance
Shares of SecureWorks were trading at $8.43 as of December 02. Over the last 52-week period, shares are up 44.2%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analysts' Take on SecureWorks
Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on SecureWorks.
Analysts have given SecureWorks a total of 1 ratings, with the consensus rating being Underperform. The average one-year price target is $7.0, indicating a potential 16.96% downside.
Analyzing Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of OneSpan, Xperi and Arteris, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- For OneSpan, analysts project an Buy trajectory, with an average 1-year price target of $19.25, indicating a potential 128.35% upside.
- Xperi received a Buy consensus from analysts, with an average 1-year price target of $30.0, implying a potential 255.87% upside.
- Analysts currently favor an Buy trajectory for Arteris, with an average 1-year price target of $15.0, suggesting a potential 77.94% upside.
Key Findings: Peer Analysis Summary
The peer analysis summary presents essential metrics for OneSpan, Xperi and Arteris, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| SecureWorks | Underperform | -11.60% | $54.74M | -3.18% |
| OneSpan | Buy | -4.41% | $41.55M | 4.43% |
| Xperi | Buy | 1.92% | $105.41M | -4.39% |
| Arteris | Buy | 10.84% | $13.25M | -205.42% |
Key Takeaway:
SecureWorks is positioned at the bottom for Revenue Growth and Gross Profit, with negative growth rates in both metrics. However, it ranks at the top for Return on Equity, showing a positive percentage. Overall, SecureWorks is performing relatively better in terms of Return on Equity compared to its peers, despite lagging behind in Revenue Growth and Gross Profit.
All You Need to Know About SecureWorks
SecureWorks Corp is a cybersecurity provider of technology-driven solutions singularly focused on protecting its customers by outpacing and outmaneuvering the adversary. The company offers its customers the following services; software-as-a-service, or SaaS, solutions, managed solutions, and professional services, including incident response and adversarial services. Its solutions enable organizations to fortify their cyber defenses to prevent security breaches, detect malicious activity in real-time, prioritize and respond to security incidents, and predict emerging threats. The company's products consist of MDR, XDR, Threat Hunting, Log Management, NGAV, EDR, IDPS.
SecureWorks's Financial Performance
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Negative Revenue Trend: Examining SecureWorks's financials over 3 months reveals challenges. As of 31 July, 2024, the company experienced a decline of approximately -11.6% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: SecureWorks's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -17.92% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): SecureWorks's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -3.18% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): SecureWorks's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive -2.21% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.01, SecureWorks adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for SecureWorks visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
