Qualys Earnings: Here’s Why Investors are Not Excited Now

Qualys (NASDAQ:QLYS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

Qualys Earnings Cheat Sheet

Results: Adjusted Earnings Per Share was $0.06 in the quarter.

Revenue: $24.7 million.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.06 per share. By that measure, the company beat the mean analyst estimate of $0.05. It beat the average revenue estimate of $24.46 million.

Quoting Management: Philippe Courtot, Chairman and Chief Executive Officer of Qualys, said, “We are very pleased with our performance for the quarter and year as we continue to benefit from strong revenue growth generated from both new and existing customers. While our core Vulnerability Management solution remains the cornerstone of our product suite, we also experienced high demand for our Web Application Scanning and Policy Compliance solutions as we successfully diversified our business throughout last year. We aim to continue this trend in 2013 with innovation efforts that will center on further expanding our platform and reaching into new markets, including the government sector with our Virtualized QualysGuard Private Cloud Platform. We believe that our best-in-class platform and the benefits of increasing operating scale will enable us to further drive growth and shareholder value over the coming year.”

Key Stats (on next page)…

EPS decreased 40% from $0.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.03 to a profit $0.04. For the current year, the average estimate has moved up from a profit of $0.15 to a profit of $0.19 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)