Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • AUD/USD

    0.6491
    -0.0045 (-0.68%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • OIL

    82.42
    +1.07 (+1.32%)
     
  • GOLD

    2,230.50
    +17.80 (+0.80%)
     
  • Bitcoin AUD

    108,872.21
    +655.09 (+0.61%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

What's in Store for SecureWorks (SCWX) This Earnings Season?

SecureWorks Corporation SCWX is slated to release first-quarter fiscal 2021 results on Jun 2.

The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $135.6 million, indicating a 2% year-over-year increase. The consensus mark for earnings is pinned at a loss of 5 cents, wider than the loss of 2 cents per share reported in the year-ago quarter.

In the last reported quarter, the company reported non-GAAP earnings per share of 2 cents, flat year over year. Further, revenues climbed 8.6% year on year to $142 million.

SecureWorks Corp. Price and Consensus

SecureWorks Corp. Price and Consensus
SecureWorks Corp. Price and Consensus

SecureWorks Corp. price-consensus-chart | SecureWorks Corp. Quote

ADVERTISEMENT

Let’s see how things have shaped up for this announcement.

Factors at Play

SecureWorks’ quarterly results are expected to reflect benefits from the continued solid demand for its products, given the healthy environment of the global security market.

Also, a huge global workforce is working remotely, in an effort to contain the spread of coronavirus. However, an increasing number of people logging into employers' networks has been triggering a greater need for security. This might have had spurred demand for SecureWorks’ products in the fiscal first quarter.

Nonetheless, the company’s bottom line is expected to have been adversely impacted by the revenue shift to VMware Carbon Black portfolio mix from Dell SafeGuard. Notably, in the fourth quarter of fiscal 2020, SecureWorks had announced that the revenue shift clipped its gross margin by 160 basis points.

What Our Model Says

Our proven model does not predict an earnings beat for SecureWorks this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

SecureWorks currently carries a Zacks Rank of 2 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

The J. M. Smucker Company SJM has an Earnings ESP of +4.33% and carries a Zacks Rank 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Campbell Soup Company CPB has an Earnings ESP of +1.23% and currently carries a Zacks Rank of 1.

Accenture ACN has an Earnings ESP of +0.65% and holds a Zacks Rank of 3 currently.

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.

Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.

Click Here, See It Free >>


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
 
Campbell Soup Company (CPB) : Free Stock Analysis Report
 
The J. M. Smucker Company (SJM) : Free Stock Analysis Report
 
Accenture PLC (ACN) : Free Stock Analysis Report
 
SecureWorks Corp. (SCWX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research