Company Update (NYSE:CUDA): Here’s Why Barracuda Networks Inc Shares Are Up 11% Today


Barracuda Networks Inc (NYSE:CUDA) investors should be smiling from ear to ear today after the IT appliance maker reported fiscal second-quarter profit and revenue that topped Wall Street forecasts. Barracuda shares reacted to the earnings release, rising nearly 11% to $26 in pre-market trading.

The company delivered $0.21 in earnings per share (EPS) on $87.9 million in revenue, compared to consensus estimates of $0.13 in EPS on $85.27 million in revenue. The same period from last year had $0.10 in EPS and $78.37 million in revenue.

“In the second quarter, we are pleased with our financial results, and continue to execute on our strategy to position Barracuda as the clear choice to help customers protect their email, networks, applications and data across diverse and distributed deployments. Our total revenue grew 12% year-over-year, gross billings reached $100.3 million and our non-GAAP earnings per share more than doubled year-over-year to reach$0.21 per share,” said BJ Jenkins, president and CEO. “We continue to innovate and bring new solutions to market that fortify the security fabric across public, private and hybrid cloud deployments and can be centrally managed from a single pane of glass. We believe Barracuda is well positioned to build on our momentum and be a market leader in our targeted focus areas as customers look to adopt new application and network deployment models and move workloads to the cloud.”

Recent Company Highlights

  • Continued Office 365 Security Momentum: With the number of advanced threats on the rise and affecting companies of all sizes, Barracuda recently announced the availability of the new Barracuda Email Threat Scan for Office 365, a cloud-based service that identifies latent threats, including hidden advanced persistent threats, within Microsoft Office 365 email accounts. With the launch of Email Threat Scan, Barracuda provides solutions to detect, prevent and recover against ransomware and other advanced attacks, offering multi-layered protection for its customers. Barracuda Email Threat Scan provides customers with an immediate view of their email security posture and enables resellers and MSPs to build a more robust email security and data protection offering.
  • Expanded Cloud-Based Data Protection Functionality: Launched Microsoft SharePoint Online backup capability for Barracuda Cloud-to-Cloud Backup, which is available as a standalone product and as part of Barracuda Essentials for Office 365. Barracuda now offers granular backup and recovery options for Microsoft SharePoint Online to help IT departments restore deleted, corrupted or stolen files that have been encrypted by ransomware – without having to perform a full site recovery of the SharePoint environment. With this launch, Barracuda offers solutions to help customers running Office 365 detect, prevent and recover from ransomware and other malicious attacks, and to centrally secure and manage data in Exchange Online, OneDrive for Business, and SharePoint Online.
  • Expanded Cloud-Ready Next-Generation Firewall Technology: Announced availability of Barracuda NextGen Firewall F-Series version 7.0, which is designed for organizations adopting cloud-based applications, operating dispersed network environments, and leveraging cloud platforms. Barracuda NextGen Firewall F-Series version 7.0 provides intelligent network perimeters, and leverages Barracuda’s global threat intelligence framework to help prevent data exfiltration from botnets and spyware for on-premises or cloud-based networks, allowing customers to more cost effectively scale by connecting on-premises and cloud networks through multiple uplinks with dynamic failover, traffic balancing and WAN optimization.
  • Enhanced Data Protection Services: Launched Barracuda Backup version 6.3 which includes key enhancements that enable fast backup and recovery performance, improved public cloud support and expanded storage capacity at competitive price points. (Original Source)

On the ratings front, Barracuda Networks has been the subject of a number of recent research reports. In a report released today, Piper Jaffray analyst Andrew Nowinski upgraded CUDA to Buy, with a price target of $32, which implies an upside of 37% from current levels. Separately, on October 4, Imperial’s Michael W. Kim downgraded the stock to Sell and has a price target of $20.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Andrew Nowinski and Michael W. Kim have a total average return of 2.0% and -43.0% respectively. Nowinski has a success rate of 48.5% and is ranked #1518 out of 4183 analysts, while Kim has a success rate of 9% and is ranked #4029.

Overall, 2 research analysts have rated the stock with a Sell rating, one research analyst has assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $24.75 which is 6.1% above where the stock closed yesterday.

Barracuda Networks, Inc. engages in the development and provision of security systems and data protection solutions. It offers cloud-connected applications and solutions for security threats, network performance, and data storage. 


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