AudioEye AEYE is scheduled to announce its second-quarter 2024 financial results on July 25.
The anticipated Zacks Consensus Estimate for revenues stands at $8.45 million, reflecting a rise of 7.82% compared to the same period last year.
As for earnings, the Zacks Consensus Estimate is set at 10 cents per share, showing a decline of 2 cents in the past month.
Notably, AudioEye has surpassed the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 100%.
Let’s delve into the factors that could influence the upcoming announcement.
Assessing AudioEye’s Performance Expectations
Audioeye, Inc. price-eps-surprise | Audioeye, Inc. Quote
Influential Factors
The performance of AudioEye in the second quarter is likely to have reaped the rewards of heightened demand for online services and a sturdy business trajectory.
The growth across different channels, including The Partner and Marketplace channel, as well as the SMB-focused marketplace products, could have positively impacted AEYE’s performance.
In the initial quarter of 2024, AudioEye secured its System and Organization Controls (SOC) 2 Type 1 report. Achieving SOC 2 Type 1 compliance is poised to bolster the company’s ability to serve existing enterprise clients and explore new avenues in the enterprise market. This development is expected to have contributed to the company’s revenue growth in the second quarter.
During the previous quarter, AudioEye witnessed a 4% year-over-year increase in revenues to reach $8.1 million. For the upcoming quarter, the company anticipates revenues in the range of $8.4 million to $8.5 million.
The revenue surge in the last quarter was largely fueled by expansions with existing partners and onboarding of new partners in collaboration with AudioEye. This trend is anticipated to have continued throughout the latest quarter.
The revenue contribution from a solid partner base, which includes prominent SaaS platforms serving cities, municipalities, and K-12 institutions, is projected to have added to AudioEye’s revenues in the period under review.
Insights from Our Model
Based on the Zacks model, a combination of positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings beat. However, this is not the case for AudioEye currently.
AudioEye holds an Earnings ESP of -26.32% and a Zacks Rank #3 at present.
Potential Stock Considerations
Here are a few stocks to have on your radar as our model indicates that they possess the right mix of elements to possibly outshine earnings expectations this season.
Arista Networks ANET boasts an Earnings ESP of +0.95% along with a current Zacks Rank #1.
Arista Networks shares have surged by 45.3% year-to-date and are scheduled to disclose their second-quarter 2024 results on July 30.
Apple has an Earnings ESP of +3.23% and a Zacks Rank #2 at present.
Apple shares have appreciated by 16.3% year-to-date and are set to report their third-quarter fiscal 2024 results on August 1.
Cognizant Technology Solutions CTSH flaunts an Earnings ESP of +0.09% and a Zacks Rank #2 currently.
Year-to-date, Cognizant Technology Solutions shares have witnessed a decline of 0.5% and are slated to announce their second-quarter 2024 results on July 31.
