Okta Stock Rips Aftermarket On Q4 Beat, Better-Than-Expected Guidance: Retail Sentiment Soars

Shares of Okta Inc. (OKTA) surged more than 15% in after-market trade on Monday after the company’s fourth-quarter results beat Wall Street estimates by a considerable margin.

If Okta manages to hold on to its after-market gains when the markets open on Tuesday, it would be a nine-month high for the San Francisco-based identity solutions provider.

Okta posted earnings per share (EPS) of $0.78, beating expectations of $0.74, surging from $0.63 year-on-year (YoY).

The company’s Q4 revenue stood at $682 million, ahead of a forecast of $668.91 million and growing by more than 12% from a year earlier.

For the full year 2024, Okta’s revenue stood at $2.61 billion, rising from $2.26 billion in the year-ago period, while EPS rose to  $2.81 from $1.60.

“We’re entering the new fiscal year laser focused on serving our customers with even more innovation on the Okta and Auth0 platforms while further elevating the industry with the Okta Secure Identity Commitment,” said Todd McKinnon, CEO of Okta.

Okta guided for an EPS between $3.15 and $3.20 in fiscal year 2025, comfortably higher than an estimate of $2.94. Its revenue guidance of at least $2.85 billion was slightly ahead of the consensus estimate of $2.80 billion.

FinChat data shows an average price target of $106 for the Okta stock, implying an upside of nearly 22% from Monday’s closing price.

Out of 40 brokerage recommendations, 13 have a ‘Buy’ rating, eight ‘Outperform,’ 18 ‘Hold,’ and one ‘Underperform.’

On Stocktwits, retail sentiment around the Okta stock soared significantly from a day ago, hovering in the ‘extremely bullish’ (96/100) territory. Message volume similarly soared, too.

One user thinks Okta’s prospects in the long term are good.

Another user praised Okta’s earnings, calling it a “stellar report.”

Okta’s shares have gained more than 10% year-to-date, while their six-month returns stood at nearly 16%.

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