Qualys Inc (QLYS) Shares Tumble 11% After Announcing Fourth Quarter Numbers and 2016 Guidance

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Shares of Qualys Inc (NASDAQ:QLYS) are down 11.33% in the pre-market after the company reported their Fourth Quarter earnings. Earnings per share actually came in higher than the consensus estimate of $0.09 at $0.14 per share. Revenue, however, missed Wall Street’s estimate of $45 million, coming in at $44.4 million, although it still increased 22% year-over-year.

Guidance for Qualys Inc (NASDAQ:QLYS) is what is causing the stock to plunge this morning. The company see First Quarter 2016 EPS coming in at between $0.14 and $0.16 per share, which is below the Street’s estimate of $0.18. The company sees revenue coming in between $44.7 million and $45.4 million which also falls short of Wall Street’s estimate of $46.3 million. For FY2016, the company expects to see earnings per share of $0.74 – $0.79 which also missed Wall Street’s estimate of $0.81 per share.

The stock closed at $22.51 during the last trading session. It is down 41.24% since July 6, 2015 and is downtrending. It has underperformed the S&P500 by 31.77%.

From a total of 10 analysts covering Qualys (NASDAQ:QLYS) stock, 4 rate it a “Buy”, 2 a “Sell”, and 4 a “Hold”. This means that 40% of the ratings are positive. The highest target price is $51 while the lowest target price is $37. The mean of all analyst targets is $42.67 which is 89.56% above today’s ($22.51) stock price. Qualys was the topic of 13 analyst reports since August 4, 2015 according to the firm StockzIntelligence Inc. Topeka Capital Markets maintained shares on January 27 with a “Buy” rating. Credit Suisse upgraded shares to a”Outperform” rating and a $45 target share price in their report from an October 8. Wunderlich maintained QLYS stock in a recent report from November 3 with a “Buy” rating. Finally, DA Davidson initiated the stock with a “Buy” rating in a report they issued on an October 16.

The institutional sentiment decreased to 1.08 in Q2 2015. It’s down 0.04, from 1.12 in 2015Q2. The ratio turned negative, as 36 funds sold all their Qualys Inc shares they owned while 42 reduced their positions. 32 funds bought stakes while 52 increased their total positions. Institutions now own 21.64 million shares which is 5.23% more than the previous share count of 20.56 million in 2015Q2.

Alpinvest Partners B.V. holds 4.5% of its total portfolio in Qualys Inc, equating to 80,331 shares. Goodman Financial Corp owns 138,955 shares representing 2.52% of their total US portfolio. Moreover, Portolan Capital Management Llc has 1.27% of their total portfolio invested in the company, equating to 335,585 shares. The Us-based Champlain Investment Partners Llc has a total of 1.23% of their portfolio invested in the stock. Herald Investment Management Ltd, a United Kingdom-based fund reported 87,250 shares owned.

Qualys, Inc. is a provider of cloud security and compliance solutions. The company has a market cap of $733.03 million. The Company’s solutions enable organizations to identify security risks to their information technology infrastructures, help protect their IT systems and applications from cyber attacks. It has 23.51 P/E ratio. The Company’s suite of security and compliance solutions delivered on its QualysGuard Cloud Platform enables its clients to identify their IT assets, collect and analyze IT security data, discover and prioritize vulnerabilities, recommend remediation actions and verify the implementation of such actions.

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