Okta Stock Gains Ahead Of Q4 Earnings, Analysts Point To Improving Demand For Bullish Outlook: Retail Sentiment Soars

Shares of Okta Inc. (OKTA) edged up in after-market trading on Friday ahead of the company’s fourth-quarter earnings.

According to The Fly, analysts expect Okta to post healthy fourth-quarter (Q4) results on Monday, driven by demand improvements and an order book worth $2.2 billion, allowing the company to balance mixed channel checks.

Wall Street expects Okta to post earnings per share (EPS) of $0.74, growing from $0.63 a year earlier. The company’s revenue is expected to rise to $668.91 million from $605 million.

For the fiscal year 2024, Okta is expected to post an EPS of $2.77, growing 73% year-on-year. Revenue is expected to rise 15% YoY to $2.6 billion.

Data shows Okta has beaten estimates in each of the past four quarters.

Okta stock received a slew of price target hikes as analysts geared up for the company’s Q4 results. 

Barclays noted that there is upside potential for Okta’s Q4 performance on the back of the remaining order book of $2.2 billion, allowing the company to balance out the mixed channel checks and seasonal nature of orders.

Mizuho noted that with markets in a “risk on” mode, there is an uptick in software sentiment and an improvement in demand patterns in other categories, such as data analytics and software-as-a-service (SaaS.)

On Stocktwits, retail sentiment around the Okta stock soared, entering the ‘extremely bullish’ (79/100) territory in the run-up to earnings. Message volume saw an uptick as well.

Okta’s shares have gained nearly 15% year-to-date, while their six-month returns stood at 19%.

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