Will Commvault Hit Another Home Run With Earnings Report?

By | May 2, 2016

Scalper1 News

On the heels of a company transition, Commvault Systems ( CVLT ) is set to report earnings before the market open Tuesday, with the stock up sharply from its previous quarterly earnings report. The provider of data management services is expected to post revenue of $157 million, up 4% year over year and marking the second quarter in a row of revenue growth after three previous quarters of declines. The consensus on earnings per share minus items, based on analysts polled by Thomson Reuters, is 25 cents, down from 27 cents in the year-earlier period, for its fiscal fourth quarter ended March 31. After reporting fiscal Q3 earnings after the close on Jan. 27 that beat estimates, Commvault stock soared 16% the following day. From that point, the stock is up 21%, about where it was one year ago. Commvault stock was trading near 43.50, down a fraction, in midday trading in the stock market today . Commvault has an IBD Accumlation/Distribution Rating of A+, suggesting heavy institutional buying and little selling of late. Pacific Crest Securities analyst Brent Bracelin said in a research note that much of Commvault’s turnaround is now behind it, giving the company a “line of sight to a recovery.” This, he said, was further proof of Commvault’s success in enabling businesses to migrate to cloud services from providers such as Amazon ( AMZN ), Google parent Alphabet ( GOOGL ) and Microsoft ( MSFT ). “We see new products driving a return to double-digit license growth in the coming year,” Bracelin wrote. Scalper1 News

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