Q2 Holdings Inc (QTWO) Expected to Post Earnings of -$0.01 Per Share

Wall Street analysts expect that Q2 Holdings Inc (NYSE:QTWO) will report ($0.01) earnings per share for the current fiscal quarter, Zacks reports. Seven analysts have issued estimates for Q2’s earnings. The highest EPS estimate is $0.02 and the lowest is ($0.07). Q2 reported earnings per share of $0.05 in the same quarter last year, which suggests a negative year-over-year growth rate of 120%. The company is scheduled to announce its next earnings results after the market closes on Wednesday, February 13th.

On average, analysts expect that Q2 will report full year earnings of $0.13 per share for the current fiscal year, with EPS estimates ranging from $0.09 to $0.16. For the next year, analysts forecast that the firm will report earnings of $0.16 per share, with EPS estimates ranging from ($0.08) to $0.37. Zacks’ EPS calculations are an average based on a survey of research analysts that that provide coverage for Q2.

Q2 (NYSE:QTWO) last issued its earnings results on Tuesday, November 6th. The technology company reported ($0.08) earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.16) by $0.08. The business had revenue of $60.50 million during the quarter, compared to analyst estimates of $60.18 million. Q2 had a negative return on equity of 12.61% and a negative net margin of 12.88%. Q2’s revenue for the quarter was up 20.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.03 earnings per share.

QTWO has been the subject of several research reports. Zacks Investment Research raised Q2 from a “sell” rating to a “hold” rating in a research note on Thursday, November 8th. Loop Capital set a $67.00 target price on Q2 and gave the stock a “buy” rating in a research note on Monday, December 31st. Morgan Stanley set a $60.00 target price on Q2 and gave the stock a “hold” rating in a research note on Thursday, November 8th. Stephens raised Q2 from an “equal weight” rating to an “overweight” rating and cut their target price for the stock from $60.00 to $59.00 in a research note on Thursday, January 3rd. Finally, BTIG Research raised Q2 from a “neutral” rating to a “buy” rating and set a $61.00 target price for the company in a research note on Wednesday, December 19th. Five research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of “Buy” and a consensus target price of $61.13.

QTWO traded up $1.34 during midday trading on Friday, hitting $56.02. The stock had a trading volume of 257,437 shares, compared to its average volume of 298,942. The firm has a market cap of $2.43 billion, a P/E ratio of -116.71 and a beta of 1.42. The company has a debt-to-equity ratio of 1.13, a current ratio of 5.62 and a quick ratio of 5.62. Q2 has a 1 year low of $37.90 and a 1 year high of $67.10.

In other Q2 news, SVP Barry G. Benton sold 1,019 shares of the business’s stock in a transaction that occurred on Wednesday, January 2nd. The stock was sold at an average price of $48.64, for a total value of $49,564.16. Following the completion of the sale, the senior vice president now owns 36,030 shares in the company, valued at $1,752,499.20. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Matthew P. Flake sold 20,000 shares of the business’s stock in a transaction that occurred on Thursday, November 1st. The shares were sold at an average price of $52.68, for a total value of $1,053,600.00. Following the completion of the sale, the chief executive officer now owns 280,008 shares of the company’s stock, valued at approximately $14,750,821.44. The disclosure for this sale can be found here. Insiders sold 152,808 shares of company stock valued at $7,880,959 in the last quarter. Corporate insiders own 17.90% of the company’s stock.

A number of hedge funds have recently made changes to their positions in QTWO. Diversified Trust Co bought a new position in shares of Q2 during the fourth quarter valued at approximately $237,000. Vanguard Group Inc raised its holdings in shares of Q2 by 32.7% during the third quarter. Vanguard Group Inc now owns 3,239,978 shares of the technology company’s stock valued at $196,181,000 after acquiring an additional 798,614 shares in the last quarter. Federated Investors Inc. PA raised its holdings in shares of Q2 by 4.2% during the third quarter. Federated Investors Inc. PA now owns 855,000 shares of the technology company’s stock valued at $51,770,000 after acquiring an additional 34,625 shares in the last quarter. Clearbridge Investments LLC raised its holdings in shares of Q2 by 704,377.1% during the third quarter. Clearbridge Investments LLC now owns 246,567 shares of the technology company’s stock valued at $14,930,000 after acquiring an additional 246,532 shares in the last quarter. Finally, Vanguard Group Inc. raised its holdings in shares of Q2 by 32.7% during the third quarter. Vanguard Group Inc. now owns 3,239,978 shares of the technology company’s stock valued at $196,181,000 after acquiring an additional 798,614 shares in the last quarter. Hedge funds and other institutional investors own 95.18% of the company’s stock.

About Q2

Q2 Holdings, Inc provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It offers Q2online, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2 Sentinel, a security analytics solution; Q2 Corporate to support RCFIs to attract and retain larger commercial accounts; and Q2 SMART, a targeting and messaging platform.

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