The 10-second takeaway
For the quarter ended March 31 (Q4), CommVault Systems beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew significantly.
Gross margins were steady, operating margins grew, net margins grew.
CommVault Systems booked revenue of $138.3 million. The 13 analysts polled by S&P Capital IQ looked for sales of $134.0 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $114.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The 14 earnings estimates compiled by S&P Capital IQ forecast $0.34 per share. Non-GAAP EPS of $0.41 for Q4 were 41% higher than the prior-year quarter's $0.29 per share. GAAP EPS of $0.35 for Q4 were 67% higher than the prior-year quarter's $0.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 87.1%, much about the same as the prior-year quarter. Operating margin was 15.8%, 360 basis points better than the prior-year quarter. Net margin was 12.3%, 370 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $130.5 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $572.1 million. The average EPS estimate is $1.57.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 233 members out of 261 rating the stock outperform, and 28 members rating it underperform. Among 78 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give CommVault Systems a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CommVault Systems is outperform, with an average price target of $76.08.
Looking for alternatives to CommVault Systems? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add CommVault Systems to My Watchlist.
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. The Motley Fool has no position in any of the stocks mentioned. 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.