Some Analysts Still See Big Upside in Hortonworks After Earnings
Hortonworks reported its fourth-quarter earnings this past week and analysts were not exactly pleased with the results.
Hortonworks Inc. (NASDAQ: HDP) reported its fourth-quarter earnings this past week and analysts were not exactly pleased with the results. In fact, many analysts ended up cutting their price targets on the stock, despite having a positive outlook.
24/7 Wall St. has taken into account the analysts’ reactions to the earnings and put together a montage of the calls made following the report. We also have included some highlights from the earnings report.
The company had a net loss of $0.72 per share on $37.4 million in revenue. The consensus estimates called for a net loss of $0.80 per share on revenue of $36.1 million.
Rob Bearden, CEO and chairman of the board of directors of Hortonworks, commented on earnings:
We are pleased with our fourth quarter performance, which was highlighted by support subscription revenue growth of 146% year-over-year. We more than doubled our customer base in 2015 and exited the year with over 800 customers. As evidenced by our 159% dollar-based net expansion rate over the trailing four quarters, we are excited to serve as the preferred IT partner during this transformational period in the data management industry.
A few analysts recently weighed in on Hortonworks:
- Credit Suisse has an Outperform rating and lowered its price target to $35 from $40.
- DA Davidson has a Neutral rating and lowered the price target to $9.
- Goldman Sachs has a Buy rating and cut its price target from $20 to $17.
- Mizuho has a Buy rating and lowered its price target to $18 from $25.
- Needham has a Buy rating and lowered its price target to $14 from $21.
- Pacific Crest has an Overweight rating and lowered its price target price from $33 to $17.
- Susquehanna raised it to Neutral from Negative but lowered the price target to $9 from $17.
- Wunderlich Securities lowered its price target to $17 from $36.
Shares of Hortonworks closed Friday at $8.43, with a consensus analyst price target of $21.61 and a 52-week trading range of $7.12 to $28.91.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
