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Cloudera (CLDR) to Report Q3 Earnings: What's in the Cards?

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Cloudera (CLDR - Free Report) is set to release third-quarter fiscal 2019 results on Dec 5.

In the last reported quarter, Cloudera reported a loss of 8 cents per share that was narrower than the Zacks Consensus Estimate of a loss of 15 cents and year-ago quarter’s loss of 17 cents.

Revenues of $110.3 million beat the consensus mark of $108 million and increased 23% on a year-over-year basis.

For third-quarter fiscal 2019, revenues are expected between $113 million and $114 million, up 20% year over year. Non-GAAP net loss is anticipated between 12 cents and 10 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $113.6 million, reflecting a rise of 20.1% year over year. The consensus mark for the bottom line is at a loss of 11 cents, narrower than a loss of 17 cents in the year-ago quarter.
 

Cloudera, Inc. Price and EPS Surprise

 

Cloudera, Inc. Price and EPS Surprise | Cloudera, Inc. Quote

 

Cloudera-Hortonworks Merger to Close Soon

The Hortonworks (HDP - Free Report) -Cloudera merger is expected to close in late December. The U.S. Federal Trade Commission has approved early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act), in connection to the previously announced merger.

Hence, the fiscal third quarter marks the company’s last quarter before the merger. Let’s see how things are shaping up for this announcement.

Factors to Watch Out For

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

At the end of the last reported quarter, the company had 568 customers with annual recurring revenues (ARR) of more than $100,000. The company also had 69 customers exceeding $1 million of ARR. Moreover, Cloudera acquired 60 new customers across various industries, including banking and financial services, manufacturing as well as the public sector.

Moreover, Cloudera is benefiting from a lower customer acquisition cost. The company’s investments in machine learning, analytics and cloud are providing it a competitive edge. Further, expanding portfolio is a key catalyst. We expect the company to sustain the momentum in the to-be-reported quarter.

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 Favorable Combination

Here are couple of stocks you may also want to consider as our model shows that these have the right combination of elements to post an earnings beat.

lululemon athletica inc. (LULU - Free Report) has an Earnings ESP of +1.55% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Casey's General Stores (CASY - Free Report) has an Earnings ESP of +6.17% and a Zacks Rank #2.

 

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