CommVault Systems Earnings: Tops Analysts’ Expectations

CommVault Systems, Inc. (NASDAQ:CVLT) reported net income above Wall Street’s expectations for the second quarter. CommVault Systems is a provider of data and information management software applications and related services. It develops, markets, and sells a unified suite of data and information management software applications under the Simpana brand.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

CommVault Systems, Inc. Earnings Cheat Sheet

Results: Net income for CommVault Systems, Inc. rose to $13.9 million (29 cents per share) vs. $7.9 million (17 cents per share) in the same quarter a year earlier. This marks a rise of 76% from the year-earlier quarter.

Revenue: Rose 21.2% to $118.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CommVault Systems, Inc. reported adjusted net income of 38 cents per share. By that measure, the company beat the mean estimate of 21 cents per share. It beat the average revenue estimate of $106.1 million.

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.7%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 29.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 43.8% and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 6 cents in the first quarter and by 4 cents in the fourth quarter of the last fiscal year.

Margins were up in the first quarter, following a drop in the previous quarter. Gross margins grew to 87%, up 0.4 percentage point from the year-earlier quarter. In the fourth quarter of the last fiscal year, the figure rose 0.6 percentage point to 86.3% from the year earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 21 cents per share, down from 23 cents ninety days ago. For the fiscal year, the average estimate has moved up from 85 cents a share to 90 cents over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

UnitedHealth Investors: Buy, Sell or Hold?

Is Apple Losing Its Buy Status?

Mitt Romney Likes Coal: Should You?