Q2 (NYSE:QTWO) Issues Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Q2 exceeded quarterly expectations: The company reported EPS of $0.70, beating the $0.68 consensus, while revenue reached $219.77 million versus estimates of $216.86 million.
• Shares rose following the results, trading at $60.22, with a $3.77 billion market capitalization and a 12-month range of $40.79 to $92.04.
• Analysts maintain a generally positive outlook, with seven Buy ratings and three Holds, a consensus rating of “Moderate Buy,” and an average price target of $73.45.

Q2 (NYSE:QTWO - Get Free Report) posted its quarterly earnings results on Wednesday. The technology company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.68 by $0.02, FiscalAI reports. The firm had revenue of $219.77 million during the quarter, compared to analyst estimates of $216.86 million. Q2 had a net margin of 8.99% and a return on equity of 14.68%.

Q2 Stock Performance

Q2 stock traded up $0.98 during trading hours on Wednesday, hitting $60.22. 1,742,359 shares of the stock were exchanged, compared to its average volume of 917,055. The stock has a market capitalization of $3.77 billion, a P/E ratio of 53.77 and a beta of 1.33. Q2 has a 12 month low of $40.79 and a 12 month high of $92.04. The business's 50-day moving average is $48.75 and its two-hundred day moving average is $51.58.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of QTWO. Wasatch Advisors LP grew its position in Q2 by 2.9% during the 3rd quarter. Wasatch Advisors LP now owns 2,158,053 shares of the technology company's stock worth $156,221,000 after acquiring an additional 60,016 shares during the last quarter. Ameriprise Financial Inc. raised its position in Q2 by 18.1% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,104,722 shares of the technology company's stock valued at $103,391,000 after purchasing an additional 169,470 shares during the last quarter. UBS Group AG raised its position in Q2 by 343.5% in the 3rd quarter. UBS Group AG now owns 1,009,946 shares of the technology company's stock valued at $73,110,000 after purchasing an additional 782,220 shares during the last quarter. Dimensional Fund Advisors LP boosted its stake in Q2 by 24.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 749,861 shares of the technology company's stock worth $54,114,000 after purchasing an additional 148,558 shares in the last quarter. Finally, The Manufacturers Life Insurance Company boosted its stake in Q2 by 23.6% in the fourth quarter. The Manufacturers Life Insurance Company now owns 648,220 shares of the technology company's stock worth $46,776,000 after purchasing an additional 123,808 shares in the last quarter.

Wall Street Analyst Weigh In

QTWO has been the topic of a number of recent research reports. Robert W. Baird set a $74.00 price objective on Q2 in a report on Thursday, April 30th. Morgan Stanley set a $63.00 target price on Q2 in a research report on Thursday, April 30th. Stifel Nicolaus set a $70.00 price target on Q2 in a research note on Thursday, April 30th. JPMorgan Chase & Co. decreased their price target on Q2 from $80.00 to $60.00 and set an "overweight" rating on the stock in a research note on Monday, June 22nd. Finally, Needham & Company LLC reiterated a "buy" rating and set a $70.00 price objective on shares of Q2 in a research note on Thursday, April 30th. Seven investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $73.45.

About Q2

Q2 Holdings, Inc develops and delivers cloud-based digital banking solutions that enable banks and credit unions to enhance customer and member experiences. The company's core offerings include the Q2 Platform, a comprehensive suite of online and mobile banking applications for retail and commercial customers, as well as digital onboarding, payments, and fraud prevention tools. Q2's platform also provides analytics and reporting capabilities designed to help financial institutions tailor products, optimize workflows, and drive engagement.

Founded in 2004 and headquartered in Austin, Texas, Q2 serves hundreds of financial institutions across the United States and Canada.

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