Q2 (QTWO) Announces Earnings Results

Q2 (NYSE:QTWO) announced its quarterly earnings data on Tuesday, May 7th. The technology company reported ($0.25) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.21), Morningstar.com reports. Q2 had a negative net margin of 18.89% and a negative return on equity of 16.48%. The company had revenue of $71.30 million for the quarter, compared to analyst estimates of $70.67 million. During the same quarter in the prior year, the company posted ($0.14) EPS. Q2’s revenue for the quarter was up 30.1% on a year-over-year basis. Q2 updated its FY 2019 guidance to EPS and its Q2 2019 guidance to EPS.

Shares of Q2 stock opened at $74.17 on Friday. The firm has a market capitalization of $3.27 billion, a price-to-earnings ratio of -200.46 and a beta of 1.53. The company has a debt-to-equity ratio of 1.40, a quick ratio of 2.08 and a current ratio of 2.08. Q2 has a 12-month low of $43.41 and a 12-month high of $76.08.

In other Q2 news, Director R. H. Seale sold 146,092 shares of Q2 stock in a transaction dated Thursday, April 4th. The shares were sold at an average price of $67.15, for a total value of $9,810,077.80. Following the completion of the transaction, the director now directly owns 381,737 shares of the company’s stock, valued at $25,633,639.55. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, President Odus Edward Wittenburg, Jr. sold 5,976 shares of the company’s stock in a transaction that occurred on Monday, March 4th. The stock was sold at an average price of $68.04, for a total transaction of $406,607.04. Following the completion of the transaction, the president now owns 111,265 shares of the company’s stock, valued at $7,570,470.60. The disclosure for this sale can be found here. Insiders have sold a total of 518,259 shares of company stock worth $36,038,266 in the last ninety days. Insiders own 17.90% of the company’s stock.

Several large investors have recently modified their holdings of QTWO. Tortoise Index Solutions LLC purchased a new stake in Q2 during the first quarter valued at $39,000. Advisor Group Inc. raised its stake in Q2 by 69.8% during the first quarter. Advisor Group Inc. now owns 659 shares of the technology company’s stock valued at $46,000 after purchasing an additional 271 shares in the last quarter. Pearl River Capital LLC purchased a new stake in Q2 during the first quarter valued at $76,000. Marshall Wace North America L.P. raised its stake in Q2 by 82.2% during the first quarter. Marshall Wace North America L.P. now owns 1,800 shares of the technology company’s stock valued at $125,000 after purchasing an additional 812 shares in the last quarter. Finally, Strs Ohio purchased a new stake in Q2 during the first quarter valued at $145,000. Hedge funds and other institutional investors own 98.72% of the company’s stock.

QTWO has been the topic of a number of analyst reports. Needham & Company LLC restated a “buy” rating and issued a $80.00 target price (up previously from $70.00) on shares of Q2 in a report on Friday, March 1st. SunTrust Banks upgraded shares of Q2 from a “hold” rating to a “buy” rating and increased their price objective for the company from $68.00 to $84.00 in a research note on Friday, March 1st. Craig Hallum reissued a “buy” rating and set a $85.00 target price (up from $80.00) on shares of Q2 in a research report on Thursday, May 9th. Stephens downgraded shares of Q2 from an “overweight” rating to an “equal weight” rating and reduced their target price for the company from $76.00 to $73.00 in a research report on Wednesday, April 3rd. They noted that the move was a valuation call. Finally, Zacks Investment Research downgraded shares of Q2 from a “strong-buy” rating to a “hold” rating in a report on Thursday, May 2nd. Two investment analysts have rated the stock with a sell rating, four have issued a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $71.04.

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About Q2

Q2 Holdings, Inc provides cloud-based digital banking solutions to regional and community financial institutions (RCFIs) in the United States. It offers Q2 Digital Banking and Transactions, a browser-based digital banking solution that delivers RCFI-branded digital banking capabilities; Q2mobility App, a mobile and tablet digital banking solution; Q2mobile Remote Deposit Capture, a partnered solution that allows remote check deposit capture; and Q2 Person-to-Person Payments, a partnered secure and integrated person-to-person payments solution.

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Earnings History for Q2 (NYSE:QTWO)

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