CommVault (CVLT) to Report Q3 Earnings: What's in Store?
CommVault Systems CVLT is set to report third-quarter fiscal 2024 results on Jan 30.
For third-quarter fiscal 2024, CVLT expects total revenues between $206 million and $210 million, indicating year-over-year growth of 7% at the midpoint. The Zacks Consensus Estimate for revenues is pegged at $208.3 million, suggesting a 6.78% increase from the year-ago quarter’s reported figure.
For the quarter, the consensus mark for earnings has remained steady at 73 cents per share in the past 30 days. The figure indicates 17.74% growth from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average surprise being 6.38%.
Let’s see how things have shaped up for this announcement.
CommVault Systems, Inc. Price and EPS Surprise
CommVault Systems, Inc. price-eps-surprise | CommVault Systems, Inc. Quote
Factors to Consider
CommVault Systems’ fiscal third quarter performance is expected to have benefited from steady demand for the company’s cyber resilience and data protection solutions by hybrid cloud organizations.
CVLT is introducing innovations that can help customers realize the benefits of AI and improve cyber resilience. The company is working with partners across the security tool chain, including security information and event management, security orchestration, automation and response, and network detection and response. Other security tool chain includes vulnerability and threat detection and assessment, incident management, and data governance and privacy.
This is expected to have aided subscription revenue growth in the to-be-reported quarter. For the fiscal third quarter, CommVault Systems expects subscription revenues, which includes both the software portion of term-based licenses and SaaS, between $106 million and $110 million. This figure indicates 24% year-over-year growth at the midpoint.
In the to-be-reported quarter, the company launched Commvault Cloud, powered by Metallic AI. This new platform is purpose-built for cyber resilience, which is designed to enable users to predict threats faster, make clean recoveries and accelerate threat response times, all at the lowest possible total cost of ownership.
The company is also pioneering new AI and security capabilities directly within Commvault Cloud. These include advanced threat prediction for preempting ransomware attacks and a feature CommVault Systems calls Cloudburst Recovery, which facilitates swift and automated data recovery across locations, contributing to seamless business continuity.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
CommVault Systems currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Apple AAPL has an Earnings ESP of +2.13% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
A. O. Smith AOS has an Earnings ESP of +3.80% and a Zacks Rank #3 at present.
A. O. Smith is set to report its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for AOS’ earnings is pegged at 95 cents per share, suggesting growth of 10.5% from the prior-year period’s reported figure.
Alphabet GOOGL has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
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