Some company earnings make a big splash. Then there's SecureWorks (SCWX) - Get SecureWorks Corp. Class A Report , which reported second quarter fiscal 2016 earnings results after the closing bell Tuesday.

What is SecureWorks? It is in the hot computer information security field, protecting clients' technology from cyber crime. The company came public in April.

Should you buy in? The stock, at around $14, is not cheap and the Atlanta company still operates at a loss. However, SecureWorks has now beaten Wall Street's earnings and revenue estimates in two straight quarters. The company has seen positive earnings revisions for the quarters ahead. Estimates for the third quarter and full year have improved by 3 cents and 14 cents, respectively. As for fiscal 2017, estimates have also been raised from a 14-cent loss to an 11-cent loss.

The stock has a consensus buy rating with an average analyst 12-month price target of $17, suggesting 18% upside from Tuesday's close of $14.40. If the stock were to reach its high target of $18 the potential premium would be 25%. These targets suggest that SecureWorks could be a solid pick for investors who are looking to play an earnings bounce in the next quarter.

TheStreet Recommends

On Tuesday the company reported a loss an adjusted loss of 7 cents per share on revenue of $103.7 million, which beat estimates on both the top and bottom lines. In terms of guidance, for the current quarter, which ends in November, the company expects to lose 9 cents per share, while revenue is expected in the range of $104 million to $105 million.

Full-year earnings are expected to range from a loss of 33 cents per share to a loss of 30 cents per share, with revenue is expected to be between $423 million to $425 million. With revenue still growing at close to 30% each quarter, while gross margins continue to expand, SecureWorks' path towards profitability is becoming more clear. The fact that monthly recurring revenue are growing to around $30 million means SecureWorks' business is becoming more stable and predictable.

What should you do? Buy SCWX, hold for the next 12 to 18 months and expect total shareholder returns of 18% to 25%.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.