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A Step In The Right Direction: Cloudera Rallies After Impressive Q2 Earnings

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A Step In The Right Direction: Cloudera Rallies After Impressive Q2 Earnings

Cloudera Inc (NYSE: CLDR) shares rallied more than 14% on Thursday after the company reported better-than-expected second-quarter numbers, including a 2 cent EPS loss and $196.7 million in revenue. Wall Street analysts expected a 10-cent EPS loss and $182 million in revenue.

Looking ahead, Cloudera also guided for third-quarter revenue of between $187 million and $190 million and an EPS loss of between 6 cents and 8 cents. Cloudera also announced the acquisition of cloud-based business intelligence firm Arcadia Data.

Several analysts have weighed in on Cloudera’s impressive report. Here’s a sampling of what they had to say.

Step In The Right Direction

Wedbush analyst Daniel Ives said the second-quarter report was a much-needed step in the right direction after a difficult period for the company.

“The company (and its investors) have been through a hurricane-like storm over the past six months as Cloudera has tried to successfully integrate the Hortonworks deal, while navigating a choppy Hadoop market,” Ives wrote in a note.

Bank of America analyst Kash Rangan said that despite signs of progress in the second quarter, there are still too many moving parts at Cloudera to get a clear picture of the company’s outlook.

“While the company hopes to achieve 15%-20%+ revenue growth and 20%+ cash flow margins in the long-term, in our view, getting there or at least meaningfully closing the gap from where we are now might be a tall order,” Rangan wrote.

CDP Is Coming

Morgan Stanley analyst Sanjit Singh said the next big catalyst for Cloudera will be the launch of Cloudera Data Platform.

“Management is focused on improving cash flow and renewal execution while looking to reinvigorate growth with the upcoming launch of CDP,” Singh wrote.

JMP Securities analyst Patrick Walravens said Cloudera has several important catalysts ahead, most importantly the launch of Cloudera Data Platform.

“This should allow Cloudera to begin to participate in the white-hot market for cloud databases, which Gartner estimates reached $10.5B in 2018, up a staggering 87% y/y,” Walravens wrote.

Ratings And Price Targets

  • Wedbush has a Neutral rating and $8.50 target.
  • Morgan Stanley has an Equal-Weight rating and $7 target.
  • Bank of America has an Underperform rating and $7 target.
  • JMP has a Market Outperform rating and $12 target.

Shares traded around $8.29 at time of publication.

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Latest Ratings for CLDR

DateFirmActionFromTo
Sep 2019MaintainsEqual-Weight
Sep 2019MaintainsNeutral
Sep 2019MaintainsNeutral

View More Analyst Ratings for CLDR
View the Latest Analyst Ratings

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