Qualys, Inc. (QLYS) kicked off the week with a bang, reporting better-than-expected financial results for the third quarter and raising its outlook for the full year. The cybersecurity leader saw its stock soar on Wednesday, gaining 27.6% to trade at $163.64. This strong performance was driven by a combination of impressive financial results and a positive outlook on the future of the company.
Qualys reported quarterly earnings of $1.56 per share, comfortably exceeding analyst expectations of $1.33 per share. Revenue for the quarter also came in above estimates, reaching $153.87 million compared to the anticipated $150.70 million.
Sumedh Thakar, Qualys’ president and CEO, emphasized the company’s commitment to innovation and its leadership position in the cybersecurity space. “Q3 was another strong quarter of rapid innovation for Qualys, reflecting our ongoing commitment to technology leadership, cybersecurity transformation, and successful outcomes for customers,” said Thakar. “With the release of several new capabilities, including our Enterprise TruRisk Management solution, TruRisk Eliminate, and Qualys TotalAI, we have further strengthened our strategic position as the partner of choice for customers looking to rearchitect and consolidate their security tools to solve modern security challenges while simplifying their operational defenses. We believe we can continue to grow long-term, maintain best-in-class profitability, and invest in key initiatives aimed at further extending the gap between Qualys and the competition.”
The company’s strong performance wasn’t limited to the third quarter. Qualys also raised its adjusted earnings per share (EPS) guidance for 2024 from $5.46-$5.62 to $5.81-$5.91. The company’s revenue guidance was also raised from $597.5 million-$601.5 million to $602.9 million-$605.9 million.
Following the release of these impressive results, analysts reacted positively, adjusting their price targets on Qualys stock. Here’s a summary of the key changes:
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Morgan Stanley:
Maintained Underweight, raised price target from $123 to $126.*
TD Cowen:
Maintained Hold, raised price target from $130 to $150.*
Truist Securities:
Maintained Hold, increased price target from $120 to $145.*
RBC Capital:
Maintained Sector Perform, raised price target from $150 to $162.*
Canaccord Genuity:
Maintained Buy, raised price target from $160 to $170.*
DA Davidson:
Maintained Neutral, raised price target from $120 to $147.*
Jefferies:
Maintained Hold, raised price target from $135 to $155.*
UBS:
Maintained Neutral, raised price target from $140 to $160.Qualys’ strong financial performance and the positive outlook from analysts suggest that the company is well-positioned for continued growth and success in the future. The company’s commitment to innovation, coupled with its strong position in the cybersecurity market, makes it a compelling option for investors considering adding cybersecurity exposure to their portfolios.
