CommVault Systems Third Quarter Earnings Sneak Peek

CommVault Systems, Inc. (NASDAQ:CVLT) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. 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.

CommVault Systems, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 23 cents per share, a rise of 53.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 21 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 23 cents during the last month. Analysts are projecting profit to rise by 44.1% compared to last year’s 98 cents.

Past Earnings Performance: Last quarter, the company reported profit of 29 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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A Look Back: In the second quarter, profit rose 76% to $13.9 million (29 cents a share) from $7.9 million (17 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 21.2% to $118.2 million from $97.5 million.

Here’s how CommVault Systems traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

cvlt

Wall St. Revenue Expectations: Analysts predict a rise of 18.4% in revenue from the year-earlier quarter to $122.7 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.59 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.56 in the first quarter to the last quarter driven in part by an increase in current assets. Current assets increased 11.3% to $448.7 million while liabilities rose by 10.1% to $173.3 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 23.5% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose more than twofold in the fourth quarter of the last fiscal year and 43.8% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 12 analysts surveyed giving that rating.

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