Cloudera Shares Surge on Report of Possible Sale

The cloud services firm issued a light revenue outlook for its full fiscal year.
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Cloudera is said to be exploring a sale, sending shares soaring in intraday trading Tuesday. 

Cloudera  (CLDR) - Get Report shares were up 19% to $12.06 on Tuesday after Bloomberg reported that the enterprise software firm is fielding takeover offers, including from private equity firms, although no deal has been reached. Trading was briefly halted in the stock after the news was reported.  

On Wednesday after the close, Cloudera, which sells cloud services for data management and analysis, reported first-quarter results that topped revenue and earnings estimates but issued a lukewarm sales outlook for both the current quarter and the full fiscal year. Shares fell 13% on Thursday. 

For its fiscal year, which ends January 2021, Cloudera guided for revenue of $825 million to $845 million, lower than its original full-year forecast of between $860 million to $880 million. Analysts polled by FactSet were modeling sales of $862.3 million on average. 

Cloudera's largest shareholder is activist investor Carl Icahn via his company, the Icahn Group. 

Icahn and his affiliates built their stake in Cloudera to roughly 18% in 2019, fueling speculation that Icahn might eventually push for a sale, significant cost cuts or some type of strategic restructuring.

Cloudera's then-CEO, Marty Cole, told TheStreet's Eric Jhonsa last September that the company was "in regular discussion" with The Icahn Group, but that it was focused on growing the business. Robert Bearden took over as CEO in January of this year. 

The Icahn Group also secured two seats on Cloudera's board of directors as part of a deal under which Icahn would limit his stake in Cloudera to under 20% and not seek further board appointees for at least a year. 

Cloudera had previously merged with rival Hortonworks, another seller of enterprise software used to carry out big data and data analytics workloads, in January 2019.

Cloudera shares are up about 4% year to date.