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OKTA Gears Up to Report Q2 Earnings: What's in the Cards?

·3 min read

Okta, Inc. OKTA is set to report second-quarter fiscal 2023 results on Aug 31.

For the fiscal second quarter, Okta anticipates a non-GAAP net loss in the range of 32-31 cents per share. The Zacks Consensus Estimate for loss has remained steady at 30 cents per share over the past 30 days.

Okta expects revenues in the range of $428-$430 million, indicating growth of 36% from the year-ago period’s reported figure. The Zacks Consensus Estimate for revenues is pegged at $430.57 million, indicating an increase of 36.47% from the year-ago quarter’s reported figure.

Okta’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 45.93%.

Okta, Inc. Price and EPS Surprise

Okta, Inc. Price and EPS Surprise
Okta, Inc. Price and EPS Surprise

Okta, Inc. price-eps-surprise | Okta, Inc. Quote


Let’s see how things have shaped up for Okta prior to this announcement:

Factors to Consider

Okta’s second-quarter fiscal 2023 results are expected to reflect the benefits of increased use cases of identity solutions.

Okta Identity Cloud’s capability to consolidate and easily integrate existing applications without compromising security or stability is attracting customers. Okta products’ ability to automate processes, secure data and reduce costs is also a positive.

Adoption of Okta’s Auth0 solution is expected to have remained strong in the to-be-reported quarter.

Demand for Okta’s solutions has remained strong due to digital transformation projects and the adoption of Zero Trust security. The momentum is expected to have continued in the to-be-reported quarter.

These factors are expected to have expanded the customer base in the fiscal second quarter. Okta gained 800 customers in the fiscal first quarter and more than 200 large customers (annual contract value of more than $100K).

Additionally, Okta’s strong partner base, which includes Amazon Web Services, has been a key catalyst.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Okta has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Nutanix NTNX has an Earnings ESP of +4.66% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Nutanix is scheduled to release fourth-quarter fiscal 2022 results on Aug 31. NTNX shares have been down 39% year to date compared with the Zacks Computer & Technology sector’s decline of 24.4%.

Hewlett Packard HPE has an Earnings ESP of +1.05% and a Zacks Rank #3. HPE is scheduled to release third-quarter 2022 results on Aug 30.

Hewlett Packard shares have been down 5.9% year to date, outperforming the Zacks Computer & Technology sector.

Guidewire GWRE has an Earnings ESP of +25.00% and a Zacks Rank #3. It is scheduled to release fourth-quarter fiscal 2022 results on Sep 6.

GWRE shares have been down 33.2% year to date, underperforming the Zacks Computer & Technology sector.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Guidewire Software, Inc. (GWRE) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
Nutanix (NTNX) : Free Stock Analysis Report
Okta, Inc. (OKTA) : Free Stock Analysis Report
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