Stock Story -
Home security and automation software provider Alarm.com (NASDAQ:ALRM) will be reporting results tomorrow after market hours. Here's what to expect.
Alarm.com beat analysts' revenue expectations by 1.6% last quarter, reporting revenues of $223.3 million, up 6.5% year on year. It was a good quarter for the company, with a decent beat of analysts' billings estimates but full-year revenue guidance missing analysts' expectations.
Is Alarm.com a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Alarm.com's revenue to grow 1.5% year on year to $227.3 million, slowing from the 5.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.49 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alarm.com has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Alarm.com's peers in the software as a service segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Manhattan Associates (NASDAQ:MANH) delivered year-on-year revenue growth of 14.8%, beating analysts' expectations by 3.5%, and Bentley reported revenues up 11.3%, topping estimates by 1.6%. Manhattan Associates traded up 10.5% following the results.
Read the full analysis of Manhattan Associates's and Bentley's results on StockStory.
Growth stocks have been quite volatile since the start of 2024, and while some of the software as a service stocks have fared somewhat better, they have not been spared, with share prices down 4.8% on average over the last month. Alarm.com is up 1.3% during the same time and is heading into earnings with an average analyst price target of $79.9 (compared to the current share price of $65).
