Back to top

Image: Bigstock

Cloudera (CLDR) to Report Q2 Earnings: What's in Store?

Read MoreHide Full Article

Cloudera is set to report second-quarter fiscal 2020 results on Sep 4.

The company reported adjusted loss of 13 cents per share in the first quarter, narrower than the Zacks Consensus Estimate of a loss of 23 cents and the year-ago quarter’s loss of 18 cents.

Revenues of $187.5 million increased 81.2% year over year but lagged the consensus mark of $188 million.

For second-quarter fiscal 2020, revenues are expected between $180 million and $183 million. Non-GAAP net loss is anticipated to be 32-28 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $181.6 million, indicating an upside of 64.5% from the figure reported in the year-ago quarter.

The Zacks Consensus Estimate for loss has remained steady at 10 cents per share over the past 30 days.

Cloudera, Inc. Price and EPS Surprise

 

Cloudera, Inc. Price and EPS Surprise

Cloudera, Inc. price-eps-surprise | Cloudera, Inc. Quote

 

Things to Watch Out For

Cloudera’s portfolio strength, go-to-market business model and sales force reorganization have helped it to expand customer base.

At the end of the last reported quarter, the company had 929 customers, with annual recurring revenues of more than $100,000. Per Cloudera, 82 of the top 100 global banks are its customers.

Moreover, partnerships with the likes of Information Services International-Dentsu, Ltd. (ISID) and International Business Machines (IBM - Free Report) strengthened its portfolio.

Key Developments in Q2

On Jun 21, Cloudera and IBM entered into an agreement for a go-to-market initiative, aimed at bringing big data and AI solutions to users across the open Apache Hadoop ecosystem.

Per the agreement, IBM will resell the Cloudera Enterprise Data Hub, Cloudera DataFlow and Cloudera Data Science Workbench. In addition, Cloudera will begin to resell IBM's Watson Studio and BigSQL.

We believe this collaboration will help IBM customers take advantage of the hybrid data architecture, which enables quick decision making.

On Jul 16, Cloudera and ISID announced a partnership to develop an integrated platform for Mizuho Americas to manage calculations on scalable architecture and implement performance tuning to meet Mizuho's specific IT requirements.

Management expects that the new hybrid architecture utilizing Cloudera's platform on Microsoft Azure will reduce the timeframe for calculations and make the application scalable.

Further, Cloudera’s newly enabled Enterprise data cloud solution for digital transformation that aims at driving customer retention and profitability, improve regulatory compliance, reduce fraud, and identify AML (anti-money laundering). Notably, this solution has been adopted by a number of global financial services institutions.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided.

Cloudera has a Zacks Rank #3 and an Earnings ESP of 0.00%.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With a Favorable Combination

Here are some companies, which, per our model, have the right combination of elements to deliver earnings beat in their upcoming releases:

Verint Systems (VRNT - Free Report) has an Earnings ESP of +3.49% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oracle (ORCL - Free Report) has an Earnings ESP of +0.10% and a Zacks Rank #3.

The Hottest Tech Mega-Trend of All                 

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


International Business Machines Corporation (IBM) - free report >>

Oracle Corporation (ORCL) - free report >>

Verint Systems Inc. (VRNT) - free report >>

Published in