Alkami Technology (ALKT) Earnings Preview: What to Expect on October 30th
Get ready for Alkami Technology’s quarterly earnings announcement on Wednesday, October 30th! This release is a crucial event for investors, as it provides a snapshot of the company’s financial health and future prospects. Here’s a comprehensive look at what to expect, key metrics to watch, and a comparison with Alkami Technology’s peers.
Analyst Expectations and Key Metrics
Analysts are forecasting an earnings per share (EPS) of $0.06 for Alkami Technology. While beating that estimate is positive, investors will be closely watching for guidance, or the company’s outlook for the next quarter. Strong guidance typically translates to increased investor confidence and potentially a positive stock price movement.
Earnings Track Record and Share Price Performance
Alkami Technology has a history of exceeding EPS expectations. In the previous quarter, the company beat EPS by $0.02, resulting in a 3.45% increase in share price the following trading day. Here’s a breakdown of Alkami Technology’s recent earnings performance and the corresponding share price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|—|—|—|—|
| Q2 2024 | $0.03 | $0.05 | 3.0% |
| Q1 2024 | $0.02 | $0.05 | 9.0% |
| Q4 2023 | $0.02 | $0.02 | -3.0% |
| Q3 2023 | -$0.01 | $0.00 | 10.0% |
As of October 28th, Alkami Technology shares were trading at $38.77. Over the past year, the stock has experienced a remarkable 120.11% gain, indicating strong investor confidence. These positive returns should provide long-term shareholders with optimism leading up to the earnings release.
Analyst Sentiment and Price Target
Understanding market sentiment and expectations is crucial for investors. A total of 7 analysts have provided ratings for Alkami Technology, with the consensus rating being “Buy.” The average one-year price target is set at $37.86, suggesting a potential 2.35% downside.
Peer Comparison
To gain a better understanding of Alkami Technology’s performance relative to its competitors, we’ll delve into the analyst ratings and average one-year price targets of Intapp, InterDigital, and BlackLine, three key players in the industry.
*
Intapp:
Consensus rating of “Buy,” with an average one-year price target of $50.88, indicating a potential 31.24% upside.*
InterDigital:
Consensus rating of “Buy,” with an average one-year price target of $160.00, indicating a potential 312.69% upside.*
BlackLine:
Maintaining a “Neutral” status, with an average one-year price target of $56.14, indicating a potential 44.8% upside.Peer Analysis Summary
| Company | Consensus Rating | Revenue Growth | Gross Profit | Return on Equity |
|—|—|—|—|—|
| Alkami Technology | Buy | 24.93% | $48.77M | -3.79% |
| Intapp | Buy | 20.88% | $83.64M | -0.15% |
| InterDigital | Buy | 119.99% | $198.34M | 16.60% |
| BlackLine | Neutral | 11.02% | $120.16M | 25.33% |
Key Takeaways from Peer Analysis
* Alkami Technology ranks lowest in Revenue Growth among its peers. It also has the lowest Gross Profit margin.
* However, Alkami Technology boasts the highest Return on Equity, outperforming its competitors in this metric.
A Deep Dive into Alkami Technology’s Financials
*
Market Capitalization:
Alkami Technology’s restricted market capitalization places it below industry averages, reflecting a smaller scale relative to its peers.*
Revenue Growth:
Alkami Technology achieved an impressive 24.93% revenue growth rate as of June 30th, 2024, indicating a substantial increase in top-line earnings. However, this growth rate lags behind the average growth rate of its peers in the Information Technology sector.*
Net Margin:
Alkami Technology’s net margin is a standout performer, exceeding industry averages. With an impressive -14.99% net margin, the company demonstrates strong profitability and effective cost control.*
Return on Equity (ROE):
Alkami Technology’s ROE falls below industry averages, indicating challenges in efficiently utilizing equity capital. With an ROE of -3.79%, the company may face difficulties generating optimal returns for shareholders.*
Return on Assets (ROA):
Alkami Technology’s ROA is below industry standards, highlighting difficulties in efficiently utilizing assets. With an ROA of -3.07%, the company might encounter challenges in delivering satisfactory returns from its assets.*
Debt Management:
Alkami Technology’s debt-to-equity ratio is below the industry average at 0.06, demonstrating a lower dependency on debt financing and a more conservative financial approach.About Alkami Technology
Alkami Technology Inc. is a leading provider of cloud-based digital banking solutions. Its Alkami Platform empowers financial institutions (FIs) to onboard and engage new users, accelerate revenue growth, and enhance operational efficiency through a proprietary, true cloud-based, multi-tenant architecture.
Stay Updated with Alkami Technology’s Earnings Calendar
To track all earnings releases for Alkami Technology, visit their earnings calendar on our site.
