Earnings To Watch: Q2 Holdings (QTWO) Reports Q2 Results Tomorrow

Adam Hejl /
2023/08/01 4:09 am EDT

Banking software provider Q2 (NYSE:QTWO) will be reporting earnings tomorrow afternoon. Here's what to look for.

Last quarter Q2 Holdings reported revenues of $153 million, up 14.1% year on year, beating analyst revenue expectations by 1.95%. It was a weak quarter for the company, with revenue guidance for the next quarter and full-year missing analysts' expectations.

Is Q2 Holdings buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Q2 Holdings's revenue to grow 9.93% year on year to $154.2 million, slowing down from the 13.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Q2 Holdings Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

With Q2 Holdings being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for vertical software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 9.07% over the last month. Q2 Holdings is up 16.9% during the same time, and is heading into the earnings with analyst price target of $33.07, compared to share price of $35.98.

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The author has no position in any of the stocks mentioned.