FBR: Tableau Delivers 'Rock Solid' Quarter

In a report published Friday, FBR Capital Markets analysts maintained a market Perform rating on Tableau Software Inc DATA, while raising the price target from $100 to $110, after the company reported robust 1Q15 results. The company has generated "another rock-solid strong quarter of results," beating expectations. "Both the top and bottom lines came in well above expectations, while it also posted an "eye-popping" billings number (17% above Street expectations)," the analysts commented. Tableau announced its June quarter top-line guidance above the Street's estimates, while raising its FY15 top-line guidance. In the report FBR Capital Markets noted, "We applaud the company's balanced focus around hypergrowth and importantly consistent profitability for the remainder of the year. Tableau clearly continues to fire on all cylinders, given strong tailwinds in its core Tableau Desktop/Server software at its existing installed base and among new customers, a dynamic we believe speaks to the massive big data opportunity that remains in the early innings." The total revenue and pro forma EPS estimates for 2Q15 (June) have been raised from $129.1 million to $138.1 million and from ($0.02) to $0.04, respectively. The total revenue and pro forma EPS estimates for FY15 have been raised from $578.5 million to $605.4 million and from and $0.36 to $0.52, respectively. "With rapid adoption of big data analytics and execution acumen adding fuel to Tableau's growth engine, we believe the company has further growth opportunities as it expands both domestically and internationally in coming quarters/years. Overall, we believe Tableau has the right products at the right time with massive secular trends (i.e., big data analytics) that should continue to drive robust demand at enterprises worldwide," the analysts added.