Cloudera Plunges 7% Despite Upbeat 2Q Earnings

Cloudera shares are currently trading down 7.5% despite the enterprise data cloud company reporting better-than-expected results for the second quarter of fiscal 2021 (ended July 31).

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Cloudera’s (CLDR) 2Q revenue increased 9% to $214.3 million, surpassing the Street’s estimate of $208.1 million. The top-line growth was driven by a 17% surge in subscription revenue to $191.5 million as customers pivoted to cloud amid the pandemic. ARR or annualized recurring revenue was up 12% to $739 million.

The company delivered adjusted EPS of $0.10 compared to an adjusted loss per share of $0.02 in fiscal 2020’s second quarter. Analysts expected EPS of $0.07. Cloudera issued a strong outlook for 3Q with adjusted EPS expected in the range of $0.08 to $0.10 on revenue of $207 million to $210 million vs Wall Street’s EPS forecast of $0.07 on revenue of $205.5 million.

Speaking about the company’s Cloudera Data Platform Private cloud offering CEO Rob Bearden said, “With CDP, we are participating in the fastest growing segment of the market through cloud-native services.”

He added, “Uniquely, we also benefit from demand for hybrid and multi-cloud solutions that allow enterprises to optimize the performance, cost and security of workloads and use cases.” (See CLDR stock analysis on TipRanks)

Following the results, Barclays analyst Raimo Lenschow raised his price target for Cloudera stock to $13 from $10 while maintaining a Hold rating. Lenschow believes that the company continues to execute well against expectations with a few tailwinds behind it.

“The Cloudera of 2020 is showing more resilience and adaptability compared to the Cloudera of years past; however, we believe the stock remains a “show me” story” commented Monness analyst Brian White.

Cloudera stock has surged about 14% year-to-date. However, the 12-month average analyst price target of $13.22 does not reflect further upside potential. Overall, 4 Buys, 7 Holds and 1 Sell add up to a Moderate Buy consensus for the cloud company.