Okta Shares Are Trading Higher Thursday: Here's Why

Okta Inc OKTA shares are trading higher Thursday after the company reported better-than-expected financial results and raised guidance. Multiple analysts also lifted price targets following the print.

• Q2 Revenue: $556 million beat estimates of $534.54 million
• Q2 EPS: 31 cents beat estimates of 22 cents

"Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year. We are building on our position as the leading independent identity partner," said Todd McKinnon, co-founder and CEO of Okta.

Outlook: Okta sees third-quarter revenue in the range of $558 million to $560 million versus estimates of $552.37 million. The company anticipates third-quarter adjusted earnings of 29 to 30 cents per share versus estimates of 20 cents per share. 

Okta also raised its full-year guidance. The company increased its full-year revenue forecast from a range of $2.175 billion to $2.185 billion to a range of $2.207 billion to $2.215 billion versus estimates of $2.18 billion. Okta raised full-year adjusted earnings guidance from a range of 88 to 93 cents per share to a range of $1.17 to $1.20 per share versus estimates of 91 cents per share.

See Also: What's Going On With CrowdStrike Stock Today?

Analyst Changes:

• Evercore ISI Group analyst Peter Levine upgraded Okta from Underperform to In-Line and raised the price target from $65 to $75.
• Oppenheimer analyst Ittai Kidron reiterated Okta with an Outperform and maintained a $110 price target.
• JMP Securities analyst Trevor Walsh reiterated Okta with a Market Outperform and maintained a $110 price target.
• BMO Capital analyst Keith Bachman maintained Okta with a Market Perform and raised the price target from $85 to $90.
• RBC Capital analyst Matthew Hedberg reiterated Okta with an Outperform and maintained a $112 price target.
• Macquarie analyst Frederick Havemeyer maintained Okta with a Neutral and raised the price target from $83 to $85.
• DA Davidson analyst Rudy Kessinger maintained Okta with a Neutral and raised the price target from $75 to $80.
• Canaccord Genuity analyst Michael Walkley maintained Okta with a Hold and raised the price target from $75 to $85.

OKTA Price Action: Okta shares were up 12.9% at $83.08 at the time of writing, per Benzinga Pro.

Photo: methodshop from Pixabay.