Software Developer SolarWinds Stock Shines After Q1 Earnings - Here's Why
Portfolio Pulse from Anusuya Lahiri
SolarWinds Corp (NYSE:SWI) reported a 4% year-on-year revenue growth for Q1 2024, surpassing analyst expectations with $193.31 million. Adjusted EPS was $0.29, beating the consensus of $0.22. Subscription revenue increased by 26.5%, while maintenance and license revenues saw declines. The company also reported an increase in adjusted gross and EBITDA margins. SolarWinds updated its fiscal 2024 revenue and adjusted EPS projections, exceeding previous estimates and analyst consensus. SWI shares rose by 2.89% following the announcement. Investors can also gain exposure to SolarWinds through SPDR S&P Software & Services ETF (NYSE:XSW) and ProShares Big Data Refiners ETF (NYSE:DAT).
May 02, 2024 | 2:53 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
ProShares Big Data Refiners ETF, which includes SolarWinds, could see a positive influence from SolarWinds' Q1 2024 earnings beat and optimistic fiscal projections.
SolarWinds' strong Q1 2024 performance and positive fiscal 2024 outlook may positively impact DAT, as it includes SolarWinds among its holdings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SolarWinds reported strong Q1 2024 earnings, surpassing analyst expectations with revenue growth and an increased adjusted EPS forecast for fiscal 2024. Shares increased by 2.89%.
The positive earnings report and raised fiscal 2024 outlook indicate strong performance and growth potential, likely leading to increased investor confidence and a positive short-term impact on SWI's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
SPDR S&P Software & Services ETF, which includes SolarWinds, may see a positive impact due to SolarWinds' strong Q1 2024 performance and optimistic fiscal 2024 outlook.
Given SolarWinds' positive earnings report and its inclusion in XSW, the ETF may experience a positive short-term impact as investors react to SolarWinds' growth and outlook.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70