Cyberark Software Ltd (NASDAQ:CYBR)
While the Company’s earnings report for CyberArk software is not due out until August 8th, the company had a press release today after the market closed which warned that they expected lower revenues than analysts had forecasted for their second quarter earnings.
It doesn’t happen too often but when companies have basically closed the books on a fiscal quarter and have a good feel for how revenues,sales and earnings are looking, they sometimes feel a fiduciary duty to pre-announce if things don’t look so great. It tends to help mitigate any negative and adverse reactions to the stock price when the actual quarterly earnings are reported.
However in this case CyberArk investors and traders did not like what they heard and made it known by the action in the share price when the market closed on Thursday July 13th, 2017. Shares dropped -17.65% and closed at $42 which was down $9 when the after- market closed at 8:00 p.m. Shares had had a decent trading day on Thursday closing at $51 and up $0.56 on the day.
The Revised Numbers
The company had been expecting about $62 million dollars in revenues. However in today’s comments the new range is between $57 million and $57.5 million. The most impacting area came from what is called non-GAAP operating income. Initial guidance had been $11.3 million, however the new range is 8.5 million to 8.9 million.
Company Comments
CyberArk CEO Udi Mokady made these statements in a press release:
“We are disappointed that our results for the second quarter will be below the guidance we provided in May. The primary reason for our revenue shortfall was our performance in EMEA, where certain deals that we anticipated would close did not close by the end of the quarter.”
CyberArk Software Charts
The above price chart shows the daily price action going back a few months. You can easily see the red horizontal resistance line and the lower green horizontal support line.
To the lower right you will see the red oval shaded area which is where shares will likely open on Friday for trading. Price will have clearly broken longer-term support and investors and traders will be keeping a close eye on it for money-making opportunities.
The above price chart shows the after-hours trading session when the news was announced. It is clear on the chart that shares fell fast and hard and then leveled off as trading closed at 8 pm.
Company Profile
CyberArk Software Ltd. develops, markets, and sells software-based IT security solutions that protect organizations from cyber attacks in the United States and internationally. The company offers privileged account security solution to secure, manage, and monitor account access and activities.
Its privileged account security solution consists of Enterprise Password Vault that provides a tool to manage and protect physical, virtual, or cloud-based assets; SSH Key Manager to store, rotate, and control access to SSH keys for preventing unauthorized access to privileged accounts; Privileged Session Manager that protects servers, applications, databases, and hypervisors from malware; and Privileged Threat Analytics that profiles and analyzes individual privileged user behavior and creates prioritized alerts when abnormal activity is detected.
The company also provides Application Identity Manager, which addresses the challenges of hard-coded, embedded credentials, and cryptographic keys being hijacked and exploited by malicious insiders or external cyber attackers; Endpoint Privilege Manager that offers Windows least privilege management and application control software; Cybertinel, which provides cyber security services; and On-Demand Privileges Manager to limit the breadth of access of Unix/Linux administrative accounts.
In addition, it offers Shared Technology Platform that integrates operating systems, databases, network devices, security appliances, hypervisors, applications, industrial control systems, and application servers in the datacenter or the cloud; sensitive information management solutions; and software maintenance and support, and consulting services.
The company offers its products to energy and utilities, financial services, healthcare, manufacturing, retail, technology, and telecommunications industries, as well as government agencies through resellers and distributors. The company was founded in 1999 and is headquartered in Petach Tikva, Israel.