SecureWorks (NASDAQ:SCWX) Updates FY 2023 Earnings Guidance

SecureWorks (NASDAQ:SCWX – Get Rating) updated its FY 2023 earnings guidance on Thursday. The company provided earnings per share guidance of -$0.70–$0.61 for the period, compared to the consensus earnings per share estimate of -$0.66. The company issued revenue guidance of $475.00 million-$490.00 million, compared to the consensus revenue estimate of $482.08 million. SecureWorks also updated its Q2 2023 guidance to -$0.17–$0.15 EPS.

Shares of NASDAQ:SCWX traded up $0.58 during midday trading on Thursday, reaching $11.89. 1,677 shares of the company’s stock traded hands, compared to its average volume of 148,061. The company has a market cap of $1.01 billion, a price-to-earnings ratio of -17.58 and a beta of 1.00. SecureWorks has a one year low of $9.26 and a one year high of $26.89. The stock has a 50 day moving average of $11.07 and a 200 day moving average of $13.33.

SecureWorks (NASDAQ:SCWX – Get Rating) last announced its quarterly earnings results on Thursday, June 2nd. The technology company reported ($0.09) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.15) by $0.06. The firm had revenue of $121.00 million for the quarter, compared to the consensus estimate of $120.90 million. SecureWorks had a negative return on equity of 4.66% and a negative net margin of 10.64%. The company’s quarterly revenue was down 13.3% on a year-over-year basis. During the same period in the prior year, the company posted ($0.01) earnings per share. Equities research analysts anticipate that SecureWorks will post -1.02 EPS for the current fiscal year.

A number of research analysts have weighed in on SCWX shares. The Goldman Sachs Group lowered their target price on SecureWorks from $14.00 to $12.00 and set a sell rating on the stock in a report on Monday, March 21st. Morgan Stanley lowered their target price on SecureWorks from $14.00 to $13.00 and set an equal weight rating on the stock in a report on Friday, June 3rd. JPMorgan Chase & Co. lowered their target price on SecureWorks from $19.50 to $16.00 and set an underweight rating on the stock in a report on Friday, March 18th. Finally, StockNews.com started coverage on SecureWorks in a report on Thursday, March 31st. They issued a hold rating on the stock. Three analysts have rated the stock with a sell rating and four have given a hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of Hold and an average target price of $15.80.

In related news, major shareholder Neil Gagnon acquired 33,080 shares of the firm’s stock in a transaction dated Thursday, June 16th. The shares were purchased at an average price of $9.43 per share, with a total value of $311,944.40. Following the completion of the purchase, the insider now directly owns 500,226 shares of the company’s stock, valued at $4,717,131.18. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 85.30% of the stock is owned by company insiders.

Several large investors have recently added to or reduced their stakes in the stock. Royal Bank of Canada grew its position in shares of SecureWorks by 1.5% during the first quarter. Royal Bank of Canada now owns 69,128 shares of the technology company’s stock worth $917,000 after purchasing an additional 1,012 shares in the last quarter. State Street Corp grew its position in shares of SecureWorks by 2.7% during the first quarter. State Street Corp now owns 184,168 shares of the technology company’s stock worth $2,440,000 after purchasing an additional 4,798 shares in the last quarter. Gamco Investors INC. ET AL grew its position in shares of SecureWorks by 30.0% during the first quarter. Gamco Investors INC. ET AL now owns 21,650 shares of the technology company’s stock worth $287,000 after purchasing an additional 5,000 shares in the last quarter. Dynamic Technology Lab Private Ltd purchased a new stake in shares of SecureWorks during the first quarter worth about $145,000. Finally, Delphia USA Inc. purchased a new position in SecureWorks during the 1st quarter valued at approximately $148,000. Hedge funds and other institutional investors own 11.87% of the company’s stock.

About SecureWorks (Get Rating)

SecureWorks Corp., through its subsidiaries, provides technology-driven information security solutions for protecting its customers in the United States and internationally. The company's solutions include software-as-a-service solutions, managed security services, and professional services, including incident response and security risk consulting services.

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