What to Expect From Barracuda Networks Earnings

October 10, 2016 by Chris Lange

Barracuda Networks Inc. (NYSE: CUDA) is scheduled to release its fiscal second-quarter financial results after the markets close on Tuesday. Thomson Reuters consensus estimates are calling for $0.13 in earnings per share (EPS) on $85.27 million in revenue. In the same period of last year, Barracuda Networks posted EPS of $0.10 and $78.37 million in revenue.

Earlier this year, the company was recognized as the 2016 Microsoft Azure Certified ISV Solution Partner of the Year, based on Barracuda’s continued technology innovation in offering solutions designed to help customers seamlessly move workloads and applications into Azure.

In the fiscal first-quarter, Barracuda delivered strong results and exceeded guidance on revenue, billings and EPS. It grew revenue 11% year over year and more than doubled its non-GAAP earnings when compared with last year.

Performance in the first-quarter was driven largely by execution on strategy, which included focusing efforts to be the leader in security and data protection for customers and expanding routes to market, specifically in the MSP and public cloud channels.

The company made solid progress on these initiatives in the first quarter, and as a result, management believes it is building market momentum and expects continued growth in core product areas and on the bottom line.

A few analysts weighed in on Barracuda ahead of the earnings report:

  • D.A. Davidson reiterated an Underperform rating with a $19.50 price target.
  • Imperial Capital has an Underperform rating with a $20 price target.
  • Pacific Crest has an Overweight rating with a $30 price target.
  • Rosebblatt Securities has a Buy rating with a $30 price target.
  • JMP Securities reiterated a Sell rating.

Excluding Monday’s move, Barracuda has outperformed the broad markets, with the stock up 27% year to date. Over the past 52 weeks, the stock was only up 25%.

Shares of Barracuda were trading up 2.7% at $24.47 on Monday, with a consensus analyst price target of $21.89 and a 52-week trading range of $9.44 to $25.77.

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