AudioEye to Report Q2 Earnings: What's in the Cards?

AudioEye AEYE is slated to report second-quarter 2024 results on Jul 25.

The Zacks Consensus Estimate for revenues is pegged at $8.45 million, indicating an increase of 7.82% from the year-ago quarter's levels.

The Zacks Consensus Estimate for earnings is pegged at 10 cents per share, which has decreased 2 cents in the past 30 days.

The company's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 100%.

Let's see how things have shaped prior to this announcement.

Factors to Consider

AudioEye's second-quarter performance is expected to have benefited from higher demand for online services and strong business momentum.

Increasing momentum across channels, including The Partner and Marketplace channel and SMB-focused marketplace products, is likely to have affected AEYE's performance.

In the first quarter of 2024, AudioEye received its System and Organization Controls (SOC) 2 Type 1 report. Achieving SOC 2 Type 1 compliance is another feature that will help the company support current enterprise customers and further penetrate the enterprise market. This is expected to have aided the company's top-line growth in the to-be-reported quarter.

In the last reported quarter, AEYE's revenues increased 4% year over year to $8.1 million. The company expects revenues between $8.4 million and $8.5 million in the second quarter.

AEYE's revenues benefited in the previous quarter, mainly due to expansion of existing partners, and new partners contracting with AudioEye. This trend is likely to have continued in the to-be-reported quarter.

Contributions from a robust partner base, which includes leading SaaS platforms that serve cities, municipalities and K-12, are expected to have contributed to AudioEye's revenues in the quarter under review.

What Our Model Indicates

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here.

AudioEye has an Earnings ESP of -26.32% and a Zacks Rank #3 at present.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

Arista Networks ANET has an Earnings ESP of +0.95% and sports a Zacks Rank #1 at present.

Shares of Arista Networks have jumped 45.3% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.

Apple has an Earnings ESP of +3.23% and a Zacks Rank #2 at present.

Shares of Apple have gained 16.3% year to date. AAPL is set to report third-quarter fiscal 2024 results on Aug 1.

Cognizant Technology Solutions CTSH has an Earnings ESP of +0.09% and a Zacks Rank #2 at present.

Shares of Cognizant Technology have lost 0.5% year to date. CTSH is set to report second-quarter 2024 results on Jul 31.

To read this article on Zacks.com click here.