Technology

Why Analysts Are Slashing Tableau Software Expectations

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Tableau Software Inc. (NYSE: DATA) saw its earnings report turn into an unexpected loss, and the company posted lower than expected license revenues. The news was bad enough that it looks like the entire analyst community missed the ball here.

The company had a fourth-quarter net loss of $0.33 per share on $202.8 million in revenue, which compares to consensus estimates of $0.16 in earnings per share (EPS) on $201.2 million in revenue.

Total revenue may have increased 42%, license revenue by 31% and international revenue by 63%, but the quarter still posted an operating loss. And it only got worse from there, considering the guidance.

On the conference call, the company gave its outlook for the first quarter as a net loss of $0.08 to $0.12 per share and revenue in the range of $160 million to $165 million. The consensus estimates call for $0.06 in EPS on $179.48 million in revenue.


Analysts weighed in on Tableau following the earnings report:

  • Wunderlich Securities cut its price target to $75 from $130.
  • Baird has an Outperform rating and lowered its target price to $80 from $100.
  • Barclays has an Overweight rating and lowered its target price from $110 to $67.
  • Credit Suisse lowered its target price to $65 from $130.
  • D.A. Davidson has a Buy rating and a target price of $101.
  • Deutsche Bank has a Buy rating and lowered its target price from $100 to $65.
  • Goldman Sachs lowered its price target to $61 from $99.
  • Jefferies has a Hold rating and lowered its target to $65 from $92.
  • Pacific Crest has an overweight rating and lowered its target to $93 from $138.
  • RBC lowered its price target to $80 from $120.
  • SunTrust Robinson has a Buy rating and a price target of $70.
  • Susquehanna has a Neutral rating and lowered its target from $100 to $55.

Shares of Tableau closed Friday down 49.4% at $41.33, within a 52-week trading range of $40.04 to $131.34. The consensus analyst price target is $112.72.

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