AudioEye to Report Q2 Earnings: What's in the Cards? - Arista Networks (NYSE:ANET), AudioEye (NASDAQ:AEYE)

AudioEye AEYE is scheduled to announce its second-quarter 2024 financial results on July 25.

Analysts estimate revenues to reach $8.45 million, indicating a 7.82% rise from the same quarter in the previous year.

Earnings per share are expected to be 10 cents, with a 2-cent decrease in the last 30 days.

AudioEye has surpassed the Zacks Consensus Estimate in the past four quarters, with an average surprise of 100%.

Let’s delve into the factors leading up to this report.

AudioEye’s Pricing and Earnings Surprise

AudioEye, Inc. Price and EPS Surprise

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

Analyzing the Situational Factors

Given the increasing demand for online services and overall business momentum, AudioEye is expected to post a strong performance in the second quarter.

Growth across various channels like The Partner and Marketplace channel and SMB-focused marketplace products may have positively impacted AEYE’s performance.

Moreover, obtaining its System and Organization Controls (SOC) 2 Type 1 report in the first quarter is likely to bolster AudioEye’s ability to cater to current enterprise clients and expand its reach in the enterprise market.

In the previous quarter, AudioEye saw a 4% revenue growth to $8.1 million, forecasting revenues of $8.4-$8.5 million for the current quarter.

The revenue increase in the last quarter was led by the expansion of partnerships, which is expected to continue driving growth in the upcoming quarter.

AudioEye’s revenue in the reviewed quarter is anticipated to benefit from its strong partner network, including top SaaS platforms serving cities, municipalities, and K-12 institutions.

Insights from Our Predictive Model

The Zacks model suggests that a positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings beat. However, this isn’t the case for AudioEye at the moment.

Stocks Warranting Attention

Aside from AudioEye, there are other potential stocks to consider based on our model’s analysis for potential earnings beats:

Arista Networks ANET shows promise with an Earnings ESP of +0.95% and a Zacks Rank #1.

Arista Networks has already seen a 45.3% increase in shares this year and is scheduled to release its Q2 2024 results on July 30.

Apple has an Earnings ESP of +3.23% and a Zacks Rank #2.

With a 16.3% rise in shares year to date, Apple is set to reveal its Q3 fiscal 2024 results on August 1.

Cognizant Technology Solutions CTSH presents an Earnings ESP of +0.09% and a Zacks Rank #2.

While Cognizant Technology has faced a slight loss of 0.5% in shares year to date, it is scheduled to announce its Q2 2024 results on July 31.

For more details on this topic, please click here.

Market News and Data brought to you by Benzinga APIs

The Tale of Microsoft Ahead of Q4 Earnings

As the curtains rise for Microsoft (MSFT) ahead of its fourth-quarter fiscal 2024 earnings report on Jul 30, investors are on the edge of their seats as they await the unveiling of financial numbers that are expected to reveal a growth trajectory. The Zacks Consensus Estimate for revenues hint at an upward trend, with projections at $64.13 billion, showcasing a 14.2% rise from the previous year. Similarly, earnings per share estimates hold firm at $2.90, indicating a potential 7.8% climb year-over-year.

The Symphony of Results

In the previous quarter, Microsoft orchestrated an earnings surprise, outperforming market expectations by 5.91%. This feat wasn’t an outlier, as the company has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 7.38%.

The Art of Projections

While analysts crunch numbers ahead of Microsoft’s earnings day, the forecast isn’t all sunshine and rainbows. The crystal ball for Microsoft’s earnings performance remains hazy, as our analytics fail to definitively predict an earnings beat this time around. With an Earnings ESP of 0.00% and a Zacks Rank of #3, the likelihood of an earnings surprise seems uncertain.

Anticipation and Speculation

Casting a keen eye on the upcoming results, Microsoft’s growth narrative is believed to be strongly influenced by its Intelligent Cloud and Productivity and Business Processes wings. Azure and Office 365, the crown jewels in Microsoft’s cloud empire, are expected to prominently drive revenue growth. Teams, the enterprise communication platform, has emerged as a pivotal player, expanding its reach and features to compete fiercely in the market.

Market Dynamics and Windows of Opportunity

The stage is set for the More Personal Computing segment, with Windows revenues anticipated to benefit from surges in Windows Commercial products and cloud services, fueled by a notable uptick in personal computer demand. The traditional PC market, following a historical trend of decline, saw a resurgence in the second quarter of 2024, underlining a shift in consumer preferences and market dynamics.

The Showdown: Price and Valuation

When it comes to the stock performance arena, MSFT has showcased a return of 17.8% year-to-date, slightly trailing the broader Zacks Computer & Technology sector. Competitors like HPE and AAPL have put up a strong show, while others like LNVGY have faced headwinds.

The Visual Symphony of Progress

Highlighting the year-to-date performance, a visual representation of Microsoft’s journey provides insights into the stock’s movements amidst sectoral dynamics and market trends.

AudioEye Set to Release Q2 Earnings: The Forecast Ahead AudioEye Set to Release Q2 Earnings: The Forecast Ahead