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-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.
With an Earnings ESP of -26.32% and a Zacks Rank #3, AudioEye faces a challenging forecast.
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.