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Mizuho Sets Expectations on Cloudera Inc (CLDR) Ahead of Earnings Today


Cloudera Inc (NYSE:CLDR) will be showing off its fourth-quarter and fiscal year 2018 results this evening, and analyst Abhey Lamba at Mizuho is confident on the storage software maker ahead of its print. The analyst reiterates a Buy rating on Cloudera shares, with a price target of $24, which implies an upside of 10% from current levels. (To watch Lamba’s track record, click here)

Lamba expects subscription revenue around $84-86mm (up 50-53% Y/Y) vs. guidance of $80-82mm and consensus of $82mm. The analyst believes total revenue could print around $101-104mm (up 39-43% Y/Y) vs. guidance of $97-99mm and consensus of $99mm. EPS could come in toward the upperend or modestly better than guidance of ($0.24)-(0.22) and street estimates of ($0.23). CFFO could show modest upside as well.

“Our checks indicate favorable demand and pricing trends; we expect performance to benefit from improved enterprise tech spending. Billings could print around $165mm (up around 30% Y/Y) vs. consensus of $156mm on: 1) robust G8000 adds to close out the year following healthy activity in F3Q; 2) very steady discounting activity; 3) potential for early renewals which should support n-t billings; 4) incremental traction in the cloud, though, typically for dev/test workloads that involve smaller node sizes; 5) improved partnerships,” Lamba noted.

The analyst concluded, “Overall, the story remains intact – we see ongoing conservatism in guidance. We expect upside to estimates due to conservatism in outlook and healthy spending environment.”

The Street largely seems to echo Lamba’s positive sentiment, considering TipRanks analytics showcase CLDR as a Buy. Out of 6 analysts polled in the last 3 months, 4 are bullish on Cloudera stock, while 2 remain sidelined. With a potential upside of nearly 7%, the stock’s consensus target price stands at $23.67.

Cloudera is aiming to simplify the complexity of running applications with many data sources by making it possible for multiple analytics services to coexist in a unified platform that includes data engineering, data warehousing and data science services accessed through a single interface with a common catalog.