Okta (NASDAQ:OKTA) is set to give its latest quarterly earnings report on Tuesday, 2024-12-03. Here's what investors need to know before the announcement.
Analysts estimate that Okta will report an earnings per share (EPS) of $0.58.
Anticipation surrounds Okta's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.11, leading to a 17.64% drop in the share price on the subsequent day.
Here's a look at Okta's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.61 | 0.54 | 0.51 | 0.30 |
| EPS Actual | 0.72 | 0.65 | 0.63 | 0.44 |
| Price Change % | -18.0% | -8.0% | 23.0% | -5.0% |
Market Performance of Okta's Stock
Shares of Okta were trading at $77.56 as of November 29. Over the last 52-week period, shares are up 6.7%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on Okta
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Okta.
The consensus rating for Okta is Neutral, derived from 17 analyst ratings. An average one-year price target of $87.94 implies a potential 13.38% upside.
Comparing Ratings Among Industry Peers
In this analysis, we delve into the analyst ratings and average 1-year price targets of Akamai Techs, Twilio and MongoDB, three key industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Outperform trajectory for Akamai Techs, with an average 1-year price target of $115.67, suggesting a potential 49.14% upside.
- As per analysts' assessments, Twilio is favoring an Neutral trajectory, with an average 1-year price target of $91.3, suggesting a potential 17.72% upside.
- As per analysts' assessments, MongoDB is favoring an Buy trajectory, with an average 1-year price target of $377.5, suggesting a potential 386.72% upside.
Peer Metrics Summary
Within the peer analysis summary, vital metrics for Akamai Techs, Twilio and MongoDB are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Okta | Neutral | 16.19% | $491M | 0.48% |
| Akamai Techs | Outperform | 4.06% | $595.87M | 1.21% |
| Twilio | Neutral | 9.67% | $578.63M | -0.11% |
| MongoDB | Buy | 12.82% | $349.86M | -4.14% |
Key Takeaway:
Okta ranks in the middle for revenue growth among its peers. It has the lowest gross profit margin. Okta's return on equity is also below average compared to its peers.
Get to Know Okta Better
Okta is a cloud-native security company that focuses on identity and access management. The San Francisco-based firm went public in 2017 and focuses on two key client stakeholder groups: workforces and customers. Okta's workforce offerings enable a company's employees to securely access its cloud-based and on-premises resources. The firm's customer offerings allow its clients' customers to securely access the client's applications.
Okta's Financial Performance
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Positive Revenue Trend: Examining Okta's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 16.19% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Okta's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.49% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Okta's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 0.48%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): Okta's ROA stands out, surpassing industry averages. With an impressive ROA of 0.32%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: Okta's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.2.
To track all earnings releases for Okta visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
