CommVault Systems (NASDAQ:CVLT) Issues Quarterly Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• Commvault beat quarterly estimates: Earnings per share came in at $1.38 versus the $1.24 consensus, while revenue reached $312.39 million compared with expectations of $310.28 million.
• Recurring-revenue momentum remained strong: Subscription revenue rose 21% year over year to $269 million, subscription annualized recurring revenue increased 20% to $1.104 billion, and the company generated $71 million in free cash flow.
• Valuation remains a concern: Shares trade near their 52-week high at a triple-digit price-to-earnings ratio, while analysts maintain a “Moderate Buy” consensus and an average price target of $163.19, suggesting limited upside from recent levels.

CommVault Systems (NASDAQ:CVLT - Get Free Report) issued its quarterly earnings results on Tuesday. The software maker reported $1.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.24 by $0.14, FiscalAI reports. CommVault Systems had a net margin of 5.62% and a return on equity of 88.75%. The business had revenue of $312.39 million for the quarter, compared to the consensus estimate of $310.28 million.

CommVault Systems Price Performance

NASDAQ CVLT opened at $167.73 on Tuesday. CommVault Systems has a 52-week low of $71.75 and a 52-week high of $175.02. The company has a debt-to-equity ratio of 16.94, a quick ratio of 2.04 and a current ratio of 2.04. The business has a 50 day simple moving average of $145.68 and a 200 day simple moving average of $118.31. The stock has a market cap of $6.95 billion, a price-to-earnings ratio of 106.83 and a beta of 0.79.

Insider Transactions at CommVault Systems

In other news, CFO Gary Merrill sold 1,293 shares of the business's stock in a transaction dated Wednesday, August 19th. The stock was sold at an average price of $142.80, for a total value of $184,640.40. Following the sale, the chief financial officer directly owned 69,628 shares in the company, valued at $9,942,878.40. The trade was a 1.82% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Sanjay Mirchandani sold 6,857 shares of the business's stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $142.80, for a total value of $979,179.60. Following the completion of the sale, the chief executive officer owned 257,676 shares in the company, valued at $36,796,132.80. The trade was a 2.59% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 29,348 shares of company stock worth $4,202,441. 0.86% of the stock is currently owned by company insiders.

Trending Headlines about CommVault Systems

Here are the key news stories impacting CommVault Systems this week:

• Positive Sentiment: Quarterly results exceeded expectations. Commvault reported adjusted earnings of $1.38 per share, ahead of the $1.24 consensus estimate, while revenue of $312.39 million topped expectations of $310.28 million. Commvault Fiscal Q2 Earnings Snapshot
• Positive Sentiment: Recurring-revenue growth remained strong. Subscription revenue increased 21% year over year to $269 million, and subscription annualized recurring revenue rose 20% to $1.104 billion. The company also generated $75 million in operating cash flow and $71 million in free cash flow, supporting the investment case for its subscription transition. Commvault Announces Second Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Analysts raised targets but remain cautious. Jefferies lifted its target to $170 from $130 while retaining a Hold rating; Cantor Fitzgerald raised its target to $171 from $132 and maintained a Neutral rating. The revised targets suggest analysts see limited additional upside after the stock’s substantial advance. Jefferies Financial Group Ratings
• Neutral Sentiment: Short-interest data showed no significant bearish positioning. Reported short interest was zero shares, with a zero-day short-interest ratio. The unusual figure suggests limited short-selling pressure, although investors may want to treat the data cautiously. Commvault Short Interest Data
• Negative Sentiment: Valuation leaves little room for disappointment. Commvault trades at a triple-digit price-to-earnings ratio and near its 52-week high. Even with the earnings beat and strong recurring-revenue growth, the neutral ratings and targets near the current trading range could weigh on the shares unless growth continues to accelerate.

Analysts Set New Price Targets

A number of brokerages have weighed in on CVLT. Truist Financial boosted their target price on shares of CommVault Systems from $155.00 to $182.00 and gave the stock a "buy" rating in a research note on Tuesday, July 21st. Guggenheim restated a "buy" rating on shares of CommVault Systems in a research report on Tuesday, July 28th. Royal Bank Of Canada upped their price objective on CommVault Systems from $150.00 to $160.00 and gave the stock a "sector perform" rating in a report on Monday, October 12th. Oppenheimer increased their price objective on CommVault Systems from $150.00 to $175.00 and gave the company an "outperform" rating in a research report on Friday, July 17th. Finally, KeyCorp increased their price target on CommVault Systems from $125.00 to $175.00 and gave the company an "overweight" rating in a research note on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and ten have assigned a Hold rating to the company. According to data from MarketBeat, CommVault Systems has a consensus rating of "Moderate Buy" and a consensus target price of $163.19.

About CommVault Systems

Commvault Systems, Inc develops data protection and cyber resilience software and services for businesses, government organizations and other institutions. Its platform is designed to help customers back up, recover, manage and secure data across on-premises infrastructure, private and public clouds, software-as-a-service applications and other distributed IT environments.

The company's offerings include backup and recovery, disaster recovery, data security, ransomware protection, cyber-recovery capabilities and data management tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.