Why Good Earnings Can’t Save Cloudera

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When Cloudera Inc. (NYSE: CLDR) reported its fiscal fourth-quarter financial results late on Tuesday, it looked like a strong quarter, with solid beats on both the top and bottom lines. However, guidance would ultimately tank this stock and, in response, analysts put Cloudera on notice.

The firm said that it had a net loss of $0.10 per share on $103.5 million in revenue, while the consensus estimates called for a net loss of $0.23 per share on $98.7 million.

Subscription revenue was $84.3 million, an increase of 50% from the year-ago period.

Looking ahead to the 2019 fiscal year, the company expects to see revenues between $435 million and $445 million, with a net loss of $0.62 to $0.59 per share. The consensus estimates call for a net loss of $0.59 per share on $461.12 million in revenue.

Even in just the quarter ahead, the firm is looking for a net loss per share in the range of $0.19 to $0.17 on revenues of $101 million to $102 million. The consensus estimates are a net loss of $0.14 and $111.15 million in revenue.

Here’s what analysts had to say after the fact:

  • D.A. Davidson cut its price target to $18 from $21.
  • Deutsche Bank downgraded it to Hold from Buy and ‍cut its target to $18 from $23.
  • Mizuho cut its price target to $23 from $24‍.
  • Morgan Stanley downgraded it to Neutral from Overweight and cut its target to $21 from $23.
  • Raymond James cut its price target from $25 to $20.
  • Stifel maintained its Buy rating but cut its target to $19 from $24‍.

Shares of Cloudera were last seen down about 38% to $13.81, with a consensus analyst price target of $23.60 and a new 52-week range of $13.33 to $23.35.