Alarm.com Holdings’ (ALRM) Q1 Earnings and Sales Exceed Estimates
Alarm.com Holdings’ (ALRM) quarterly earnings were $0.41 per share. This was higher than the Zacks Consensus estimate of $0.30. The earnings per share are down from $0.39 a year earlier. These figures have been adjusted to remove non-recurring items.
This quarter’s report shows a surprise in earnings of 36.67%. This security services company surprised by 23.26% when they posted earnings per share of $0.53 instead of the $0.43 expected.
In the last four years, the company’s EPS has exceeded consensus estimates four times.
Alarm.com, which is part of the Zacks Security and Safety Services sector, reported revenues of $209.72 million for the three months ended March 2023. This was 1.17% higher than the Zacks Consensus estimate. The revenues for the same period last year were $205.44million. The company’s revenue has exceeded the consensus estimates four times in the last quarter.
The management’s comments on the earnings conference will have a major impact on whether the immediate price movements of the stock are sustainable based on recently released numbers and expectations for future earnings.
Alarm.com shares have lost about 4.1% since the beginning of the year versus the S&P 500’s gain of 7.3%.
What’s next for Alarm.com?
Alarm.com shares have underperformed so far in this year’s market. Investors wonder what the stock will do next.
Earnings outlook is one measure that investors can use to help answer this question. It is important to note that this includes both the current consensus expectations of earnings for the upcoming quarters, as well as how these expectations have recently changed.
Research shows that there is a strong correlation in the near-term between stock movement and earnings estimate revision trends. Investors can either track these revisions themselves, or rely upon a rating tool that has a proven track record in harnessing the power generated by earnings estimate revisions.
Alarm.com has a mixed trend in the revisions of its earnings estimates. Although the direction and magnitude of the estimate revisions may change in the wake of the recently-released earnings report for Alarm.com, the current state translates into the Zacks Stock Rank #3. The shares should perform in line the market’s expectations in the near term. Here is the full list of Zacks #1 (Strong Buys) stocks for today.
In the days to come, it will be interesting how the estimates for the upcoming quarters and the current fiscal year may change. The current consensus EPS is $0.35 for revenues of $214.33 for the coming quarter. It’s $1.54 based on revenues of $862.93 for the current year.
Investors must be aware of the fact the outlook for an industry may have a material effect on the performance of a stock. Security and Safety Services, according to the Zacks Industry Rank is in the top 27% out of 250 plus Zacks Industries. Our research indicates that the top half of Zacks ranked industries perform better than the bottom half by a factor greater than 2 to 1.
Applied DNA Sciences is another stock in the industry that has not reported its results for the period ending March 2023. Results are expected on May 11th.
The DNA-based technology company that specializes in security is expected to report a quarterly loss of $0.17 a share, representing a change from the previous year of +39.3%. Over the past 30 days, the consensus EPS estimate has remained the same.
Applied DNA Sciences is expected to report revenues of $4.2 million in the third quarter, a decrease of 31.7% compared to the same period last year.
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Alarm.com Holdings, Inc. (ALRM) : Free Stock Analysis Report
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