Cloudera Climbs on 'Impressive' Fourth-Quarter Results

Analysts react to Cloudera's fourth-quarter results that beat Wall Street's estimates.
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Analysts were gathering around Cloudera  (CLDR) - Get Report Wednesday after the cloud data company reported "impressive" fourth-quarter results that beat Wall Street's estimates.

Shares were climbing 4.5% to $8.20.

Morgan Stanley, which has an equal-weight rating on shares of the Palo Alto, California-based company with a price target of $100, said Cloudera had “one of its most impressive quarters” since the end of 2018. 

Cloudera's near-term concerns, Morgan Stanley said, include the company's “complicated and technical sales cycle," which could face challenges given the impact from the coronavirus.

Cloudera posted a fourth-quarter loss of $64.3 million, or 22 cents a share, compared with $85.5 million, or 45 cents a share, a year ago. Adjusted earnings were 4 cents a share, ahead of FactSet's estimate of a loss of 3 cents a share. Revenue totaled $211.7 million, up from $144.5 million a year ago and beat FactSet's forecast for $201.8 million.

Looking ahead, the company said it expects an adjusted loss of 1 cent a share to earnings of 1 cent a share and revenue of $202 million to $207 million for the first quarter, compared with Wall Street's forecast for a loss of 3 cents a share on revenue of $204.3 million. 

For the full year, Cloudera is forecasting earnings of 25 cents to 29 cents a share and revenue of $860 million to $880 million for the year. Wall Street is looking for a loss of 1 cent a share on revenue of $864.4 million for the year.

JMP Securities, which has a market outperform rating on the stock and a $17 price target, said the results showed “a dramatically improved financial profile.”

Cloudera's stock “could double from here” as the valuation remains attractive, said JMP Securities, while the company is seeing continued “improvements in sales execution and renewal rates.”

Barclays analyst Raimo Lenschow, however, lowered his firm's price target on Cloudera to $10 from $13 while keeping an equal weight rating.

Lenschow said the company produced another impressive quarter and provided conservative fiscal 2021 guidance that still beat consensus.

The coronavirus could present a risk, but this risk is likely not any different from the rest of the software space, he said. Lenschow believes the results should lead to shares moving higher. Although he thinks Cloudera is stable in the short term, Lenschow sees competitive issues longer term as customers move workloads to public cloud.