What's In Store For Proofpoint (PFPT) This Earnings Season?
Zacks Investment Research | Feb 01, 2018 09:18PM ET
Proofpoint, Inc. (NASDAQ:PFPT) is slated to release fourth-quarter 2017 results on Feb 6. The question lingering in investors’ minds is whether this cybersecurity firm will be able to post a positive earnings surprise in the to-be-reported quarter. Notably, the company has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average positive surprise of 35.4%. So, let’s see how things are shaping up prior to this announcement.
What to Expect?
The current Zacks Consensus Estimate for the quarter under review is pegged at 21 cents, representing year-over-year growth of 16.7%. We note that the Zacks Consensus Estimate remained unchanged over the past 60 days. Additionally, analysts polled by Zacks project revenues of roughly $139.8 million, up 30.9% from the year-ago quarter.
Let’s take a look at the driving factors this quarter.
Increased Migration to Office 365 Driving Security Demand
As more and more enterprises are migrating to cloud, demand for better cyber-security measures is on the rise. For the last few quarters, Proofpoint has been witnessing solid demand for its cyber-security suites from enterprises which are transitioning to cloud, particularly to Microsoft's (NASDAQ:MSFT) Office 365.
Per the company, customers are looking for additional security capabilities that “complement and enhance the baseline solutions provided by Microsoft.” During the third quarter, a number of enterprises, which migrated to Office 365, bought the company’s security suits that also included a significant number of Fortune 500 enterprises.
We expect this momentum to continue in the to-be-reported quarter as well, thereby boosting its Protection and Advanced Threat segment’s top-line performance. The Zacks Consensus Estimate for revenues for the segment is pegged at $105 million, which signifies a year-over-year increase of 3.6.4%.
Proofpoint, Inc. Price and EPS Surprise
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