The 10-second takeaway
For the quarter ended Dec. 31 (Q3), CommVault Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share dropped.
Margins contracted across the board.
CommVault Systems booked revenue of $103.6 million. The 16 analysts polled by S&P Capital IQ anticipated a top line of $100.4 million. Sales were 24% higher than the prior-year quarter's $83.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.27. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.25 per share on the same basis. GAAP EPS of $0.15 for Q3 were 6.3% lower than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 86.9%, 100 basis points worse than the prior-year quarter. Operating margin was 11.9%, 60 basis points worse than the prior-year quarter. Net margin was 6.9%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $105.6 million. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $396.7 million. The average EPS estimate is $0.97.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 223 members out of 245 rating the stock outperform, and 22 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 give CommVault Systems a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CommVault Systems is hold, with an average price target of $43.92.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.