Quarterly reports can directly influence the market share of a company and that is exactly what happened when Ping identity Holding (NYSE:PING) reported their Q4 results. The shares of Ping identity Holding decreased by 11% in the market on Thursday when news hit that the IT Company’s earnings per share (EPS) have decreased over the past year by 35.71%.
What does Ping Identity do?
Ping identity is one of a kind American software company that is enlisted in the 615 individual stocks in the Computer and Technology stock market sector. With partnership including Amazon and Microsoft, Ping Identity has been chosen by a more than half of the Fortune 100 companies for their intelligent identity solutions. Its Head Quarter is established in Denver, Colorado since 2002.
The fourth quarterly report
The quarterly earnings of Ping identity came out at $0.09 which beats the Zack Consensus Estimate (ZCE) by a $0.02 margin; however it was in-line with the Benzinga Insights. The IT service industry posted revenues of $63.26 million that misses the Zack consensus mark by 8.02% and a 7.3% decline from the previous year’s same period earnings of $68.84 million.
If you take a look at the company’s previous 4 quarters, it has beaten the Earning Per Share estimates consecutively. Similarly, in the past quarter it performed beyond the expected EPS of $0.02 by producing $0.11 EPS which is a triple digit percentage increase. However, the earning guidance hasn’t been shared by the company. This is one of the reasons that the investors could not foresee any future outlook and had to react on the current knowledge of year-over-year decrease in Earning Per Shares based on the fourth quarterly report.
The ARR in the Q4 report was $259.1 million while the total revenue for the fourth quarter is $63.3 million. The ARR 2020 has a 15% increase over the prior year. The total revenue for the previous year was $243.6 million, 92% of which was accounted in in the detailed report as subscription revenue. The company’s upcoming fiscal year’s revenue is expected between $255 and $265 million.
Current Situation of Ping Identity in the market
Even with the news of 11% plunge in the market, the current sustainability of the PING stock’s price movement can only be determined by further information based on the future earnings expectations. The estimate revision trends are still mixed. Thus investors and analyst will be looking forward eagerly to the earning guidance report issue of the PING stock.
CEO says Ping identity has exceeded expectations!
The CEO of Ping Identity, Andre Durand commented on the quarterly report stating that expectations have been surpassed in the last quarter along with increasing demand for cloud offerings. Indicating that the growth driver in the company currently is investments related to the SaaS cloud as well as innovation in the intelligent identity solutions for which subscriptions were purchased. Furthermore, the Gartner 2020 Critical Capabilities for Access Management report awarded first rank to Ping identity in all Identity Use Cases (IUC: Internal, External and Multiconsistency)
The Biden Bull
Some analysts are taking into consideration the volatility of the stock market as well as the fiscal stimulus being injected into the recessed economy. They believe that economy can be steered by the current government of Joe Biden into an explosive bull market. Due to which Ping Identity has been identified to be the one to take a ride on this bull based solely on fact that businesses are transitioning to online-service based demand hype and with that there is a growing demand for data security.
Keep an eye on the future
Cloud protections and Cyber security is mandatory in the upcoming era. Investors definitely to need keep a good lookout for the economic developments unfolding and shaping the stock market in the future as well as the near-term market movement of the Ping Identity stock, for it can definitely show promises of lighting up in the future.