Commvault Systems, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
As you might know, Commvault Systems, Inc. (NASDAQ:CVLT) just kicked off its latest third-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$217m, some 4.1% above estimates, and statutory earnings per share (EPS) coming in at US$0.38, 22% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Commvault Systems
Taking into account the latest results, the current consensus from Commvault Systems' nine analysts is for revenues of US$881.3m in 2025. This would reflect an okay 7.5% increase on its revenue over the past 12 months. Commvault Systems is also expected to turn profitable, with statutory earnings of US$1.52 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$864.3m and earnings per share (EPS) of US$1.51 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 20% to US$98.65. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Commvault Systems at US$115 per share, while the most bearish prices it at US$84.20. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Commvault Systems' growth to accelerate, with the forecast 6.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 12% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Commvault Systems is expected to grow slower than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Commvault Systems' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Commvault Systems going out to 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Commvault Systems has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
