Commvault Systems (CVLT) Reports Earnings Tomorrow. What To Expect

Radek Strnad /
2023/05/01 3:32 am EDT
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Data backup provider Commvault (NASDAQ:CVLT) will be reporting results tomorrow before market open. Here's what investors should know.

Last quarter Commvault Systems reported revenues of $195.1 million, down 3.61% year on year, missing analyst expectations by 4.28%. It was a weaker quarter for the company, with slow revenue growth and a miss of the top line analyst estimates. The company added 33 enterprise customers paying more than $100,000 annually to a total of 206.

Is Commvault Systems buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Commvault Systems's revenue to decline 4.35% year on year to $197 million, a further deceleration on the 7.63% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.

Commvault Systems Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Commvault Systems's peers in the data and analytics software segment, only Alteryx has so far reported results, delivering top-line growth of 26.1% year on year, missing analyst estimates by 0.49%. The stock was down 8.45% on the results. Read our full analysis of Alteryx's earnings results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the data and analytics software stocks have fared somewhat better, they have not been spared, with share price declining 6.81% over the last month. Commvault Systems is up 2.43% during the same time, and is heading into the earnings with analyst price target of $69.8, compared to share price of $58.27.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.