Rapid7 Set to Announce Q4 Earnings on February 10
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy RPD?
Source: seekingalpha
- Earnings Announcement Date: Rapid7 is set to release its Q4 2023 earnings report on February 10 after market close, with a consensus EPS estimate of $0.42, reflecting a 12.5% year-over-year decline, indicating potential profitability pressures.
- Revenue Expectations: Analysts forecast revenue of $215.17 million, down 0.5% year-over-year, highlighting challenges in revenue growth that could impact the company's future investment attractiveness.
- Historical Performance: Over the past two years, Rapid7 has exceeded EPS estimates 88% of the time and revenue estimates 100% of the time, demonstrating its capability in managing market expectations effectively.
- Rating Downgrade Impact: Recently, Barclays downgraded Rapid7 due to concerns over vulnerability management, which may negatively affect investor confidence and exacerbate market worries regarding its future performance.
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Analyst Views on RPD
Wall Street analysts forecast RPD stock price to rise
20 Analyst Rating
5 Buy
14 Hold
1 Sell
Hold
Current: 7.090
Low
21.00
Averages
30.19
High
40.00
Current: 7.090
Low
21.00
Averages
30.19
High
40.00
About RPD
Rapid7, Inc. is a global cybersecurity software and services provider. It has the expertise of the security operations center (SOC) across information security, cloud operations, development, and information technology (IT) teams, enabling them to understand the attacker and leverage that information to take control of their fragmented attack surface. Rapid7 Managed Threat Complete (MTC) is its flagship offering and unifies the leading detection and response of Rapid7 Managed Detection and Response (MDR) and the exposure management of Rapid7 Managed Vulnerability Management (MVM) to manage customer’s imminent risks, pinpoint and eliminate threats as early as possible and build resiliency for their future. Its Rapid7 Threat Complete unifies Rapid7 InsightIDR (InsightIDR) and Rapid7 InsightVM (InsightVM) to provide complete risk and threat coverage in a single offering. Its security solutions help more than 11,000 global customers unite cloud risk management and threat detection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Interest Rate Expectations Shift: Following the robust employment report, the market's expectation for a Fed rate cut next month dropped from 23% to 6%, with the 10-year T-note yield rising by 3 basis points to 4.17%, reflecting a cautious outlook on future monetary policy.
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- Impact of Downgrade: The downgrade by Canaccord Genuity may lead investors to reassess their portfolios, potentially affecting the company's market value and financing capabilities, especially in the current economic climate.
- Severe Market Reaction: The sharp decline in Rapid7's stock price has drawn widespread attention from the market, with analysts and investors expressing concerns about the company's future prospects, which could impact its competitive position in the industry.
- Investor Confidence Shaken: This stock drop may shake investor confidence in Rapid7, potentially affecting future capital inflows and business expansion plans, particularly against the backdrop of increasing competition in the tech sector.
See More
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- Strong Employment Data: US nonfarm payrolls rose by 130,000 in January, exceeding expectations of 65,000, while the unemployment rate unexpectedly fell by 0.1% to 4.3%, indicating labor market stability that could influence Fed policy decisions.
- Interest Rate Expectations Shift: Following the stronger-than-expected jobs report, the 10-year T-note yield increased by 3 basis points to 4.17%, with market expectations for a Fed rate cut next month dropping from 23% to 8%, reflecting investor caution regarding future monetary policy.
- Corporate Earnings Performance: So far, 78% of the 319 S&P 500 companies have reported earnings that beat expectations, with Q4 earnings growth projected at 8.4%, demonstrating corporate resilience that may support the stock market.
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- Accelerated Wage Growth: Average hourly earnings for private nonfarm employees rose by 0.4% to $37.17, a significant acceleration from December's 0.1% increase and exceeding expectations of 0.3%, which will enhance consumer purchasing power.
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- Rising Bond Yields: Following the robust payroll report, the 10-year Treasury yield rose by 4 basis points to 4.18%, with market expectations for a Fed rate cut next month dropping from 23% to 6%, reflecting investor caution regarding future monetary policy.
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