Commvault Systems, Inc. reports results for the quarter ended September 30 - Earnings Summary

What happened

Commvault Systems reported quarterly adjusted earnings of $1.38 per share, above the $1.24 analysts expected and last year's 91 cents. Revenue rose 13.1% to $312.39 million, beating the $310.28 million estimate. Reported earnings per share were 69 cents, with net income of $29.11 million.

Confirmed

Global impact / market context

Higher adjusted earnings and revenue than analysts expected suggest Commvault is selling more software and keeping more profit per sale, which can support the share price. The stock already gained 33.8% this year, so strong results may reinforce investor confidence in the business.

Analyst inference

Analysts hold a buy rating on average, split between 11 buy or strong buy and 10 hold, with no sells. The median 12-month price target of $170.50 sits about 1.6% above the last closing price of $167.73, implying limited expected upside from here.

Analyst inference

What to watch

1. Commvault shares had risen 11.9% this quarter and gained 33.8% so far this year, figures investors can compare with future quarterly updates. Confirmed
2. Watch whether analysts raise earnings estimates further, after the mean estimate rose about 2.1% in three months with no negative revisions in 30 days. Proposed
3. Watch revenue growth of 13.1% for signs it can continue beating the $310.28 million estimate, which would support profit and the buy ratings. Analyst inference

Evidence

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