What to Look for in Barracuda Networks’ Earnings

By Chris Lange Updated Jan 13, 5:58AM EST · Published Jul 7, 2:47PM EDT

What to Look for in Barracuda Networks’ Earnings — © Thinkstock

Barracuda Networks Inc. (NYSE: CUDA) is set to report fiscal first-quarter financial results after the markets close on Thursday. The consensus estimates are calling for $0.11 in earnings per share (EPS) on $83.84 million in revenue. The same period from last year had $0.09 in EPS on $77.97 million in revenue.

In the fiscal fourth-quarter, Barracuda delivered better than expected results, achieved EPS of $0.15, and grew its active subscriber count 14% to 278,000. Also during this time, Barracuda repurchased roughly $11 million of its shares in the open market during the quarter, bringing the total for the fiscal year to $19 million.

This company designs and delivers security and storage solutions that are cloud-connected and help customers address security threats, improve network performance and protect and store their data. If you have traveled via an airport in the past decade, you have likely seen their wall advertisements.

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Barracuda provides various security solutions, including email security solutions, such as Barracuda Spam Firewall and Barracuda Email Security Service; Barracuda Web Filter, a web security solution to protect users from rapidly evolving web-based threats, as well as to enhance productivity and optimize bandwidth; next-generation firewall solutions, just to name a few.

A few analysts weighed in on the company prior to the release of the earnings report:

Pacific reiterated a Hold rating.
DA Davidson reiterated a Neutral rating with a $15.50 price target.
Summit Redstone reiterated a Hold rating with a $15 price target.
Summit Research initiated coverage with a Hold rating.
JMP Securities has an Underperform rating with a $13 price target.
Northland Securities initiated coverage with an Outperform rating and a $24 price target.

Excluding Thursday’s move, Barracuda has underperformed the broad markets, with the stock down 20% year to date. Over the past 52 weeks, the stock is actually down about 61%.

Shares of Barracuda Networks were last trading up 2.7% at $15.40, with a consensus analyst price target of $9.44 to $39.99.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.