The FTSE 250 constituent Darktrace PLC (GB:DARK) will announce its Q4 and full-year earnings for FY 2023 this week on September 6. The analysts are bullish on the numbers and predict that the stock is set to experience further growth of over 40%.
After a 34% decline in trading during 2022, the shares have rebounded in the current year. YTD, the Darktrace share price gained almost 40% in 2023.
Darktrace is an AI-focused cybersecurity company that offers solutions to combat a range of threats, including ransomware, cloud attacks, SaaS breaches, and more. The company has operations in more than 100 countries and has customers across various industries such as financial services, manufacturing, energy, healthcare, and retail, among others.
Expected Numbers
During July, the company released robust figures in its 2023 trading update, exceeding expectations. The anticipated revenue expansion for the year is projected at 31%, reaching a total of $544.3 million. Darktrace witnessed an increase of 18.3% in its customer count. In the fourth quarter, the group acquired 396 net new customers, resulting in a total of 1,362 new customers for the fiscal year.
According to analysts’ consensus, the forecasted EPS for Q4 is £0.05, as compared to the negative EPS of £0.01 reported in the same quarter last year.
The guidance for 2024 takes into account the ongoing stabilization of year-over-year sales trends during the first half, along with the anticipated improvements in the second half of the year.
Is Darktrace a Good Stock to Buy?
Four days ago, Alex Hoa Nguyen from Jefferies reiterated his Buy rating on the stock, predicting an upside of almost 50% in the share price. We anticipate that additional analysts will affirm their ratings after the release of the results.
As per the consensus among analysts on TipRanks, DARK stock has been assigned a Strong Buy rating. The company’s ratings consist of all five Buy recommendations.
The Darktrace share price target is 535p, with a high and a low forecast of 600p and 480p, respectively. This price target indicates a potential change of 44.9% from the current share price.
Ending Notes
The company’s revenue, earnings, and cash flow are on the rise, indicating that its performance could be a major factor influencing the share price. Analysts remain optimistic ahead of earnings this week.
