Monday.Com MNDY is preparing to release its quarterly earnings on Monday, 2024-11-11. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Monday.Com to report an earnings per share (EPS) of $0.63.
Monday.Com bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Performance in Previous Earnings
In the previous earnings release, the company beat EPS by $0.38, leading to a 1.21% increase in the share price the following trading session.
Here's a look at Monday.Com's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.56 | 0.40 | 0.32 | 0.20 |
| EPS Actual | 0.94 | 0.61 | 0.65 | 0.64 |
| Price Change % | 1.0% | 3.0% | 1.0% | 6.0% |
Monday.Com Share Price Analysis
Shares of Monday.Com were trading at $318.56 as of November 07. Over the last 52-week period, shares are up 105.75%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on Monday.Com
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Monday.Com.
Analysts have provided Monday.Com with 23 ratings, resulting in a consensus rating of Buy. The average one-year price target stands at $306.83, suggesting a potential 3.68% downside.
Analyzing Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of Gen Digital, GitLab and SentinelOne, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- For Gen Digital, analysts project an Neutral trajectory, with an average 1-year price target of $32.5, indicating a potential 89.8% downside.
- Analysts currently favor an Buy trajectory for GitLab, with an average 1-year price target of $62.0, suggesting a potential 80.54% downside.
- For SentinelOne, analysts project an Outperform trajectory, with an average 1-year price target of $28.89, indicating a potential 90.93% downside.
Snapshot: Peer Analysis
Within the peer analysis summary, vital metrics for Gen Digital, GitLab and SentinelOne are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Monday.Com | Buy | 34.40% | $212.34M | 1.62% |
| Gen Digital | Neutral | 3.07% | $780M | 7.92% |
| GitLab | Buy | 30.81% | $161.21M | 2.14% |
| SentinelOne | Outperform | 33.14% | $148.24M | -4.26% |
Key Takeaway:
Monday.Com ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, Monday.Com is at the bottom compared to its peers.
Delving into Monday.Com's Background
Monday.com is a provider of work management software delivered via a cloud-based software-as-a-service, or SaaS model. The firm's solutions offer flexible and highly customizable tools to digitize business processes across countless use cases. Monday's offering supports workflow management across departments, real-time visibility and accountability, and automation capabilities. Monday also offers prepackaged CRM and DevOps management solutions, in addition to standalone survey and digital whiteboard tools. As of 2023, Monday served over 225,000 customers in more than 200 countries.
Unraveling the Financial Story of Monday.Com
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Monday.Com's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 34.4%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: Monday.Com's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.06%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Monday.Com's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.62%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Monday.Com's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.0% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.06, Monday.Com adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Monday.Com visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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