Cloudera and DocuSign Soar, Zoom Video Falls after Earnings

Mid-cap tech stocks including Cloudera (CLDR), DocuSign (DOCU), and Zoom Video (ZM) announced their earnings. Cloudera stock has risen 10.2%, DocuSign stock has risen 5.5%, and Zoom Video stock has fallen 11% at the time of writing.

Cloudera’s earnings and revenues

Cloudera announced its earnings for the third quarter of fiscal 2020 (year ending in January) on Thursday after the market close. The company reported revenues of $198.3 million with an adjusted EPS of -$0.03.

The sales rose 67% YoY (year-over-year) in the third quarter. Notably, the annual recurring revenues rose 13% to $697.4 million. Analysts expected the company to post sales of $189.05 million and earnings of -$0.06 in the October quarter.

For the fiscal fourth quarter, Cloudera estimated sales between $200 million and $203 million with an adjusted EPS estimate between -$0.04 and -$0.02. In comparison, analysts forecast fourth-quarter sales at $196.97 million with an EPS of -$0.05.

Cloudera’s fiscal 2020 sales forecast is between $782 million and $785 million with an EPS forecast between -$0.21 and -$0.19. Analysts estimated the company’s 2020 revenues at $770.23 million and the EPS at -$0.26.

Cloudera’s earnings and revenues beat and strong guidance resulted in the stock’s upward spiral today.

The company’s strong quarter led to an upward revision in the stock’s target price. Several analysts raised Cloudera’s target price, according to multiple reports from The Fly.

  • Deutsche Bank increased the target price from $8 to $11 and reiterated a “hold” rating.
  • Wedbush increased its target price from $8.5 to $11 and maintained a “neutral” rating on the stock.
  • DA Davidson increased its target price from $11 to $13 and reiterated a “buy” rating.
  • JMP Securities maintained a “buy” rating and increased the target price from $12 to $15.

Currently, Cloudera stock is trading at $11.

DocuSign reports revenues of $249.5 million in Q3

DocuSign announced its earnings results for the third quarter of fiscal 2020 (year ending in January) on Thursday after the market close. The company reported revenues of $249.5 million with an adjusted EPS of $0.11.

The company’s sales rose 40% YoY in the third quarter, while subscription sales rose 41% to $238.1 million. Analysts expected DocuSign to post sales of $239.86 million and earnings of $0.03 in the October quarter.

In the fiscal fourth quarter, DocuSign expected sales between $263 million and $267 million. For 2020, the company’s revenue estimate is between $962 million and $966 million. In comparison, analysts forecast fourth-quarter sales at $260.4 million, while the fiscal 2020 sales were estimated at $950.95 million.

Analysts increased DocuSign’s target price estimates after its strong third quarter and guidance.

  • JMP Securities increased the target price from $75 to $86 and maintained an “outperform” rating.
  • Citi raised its target price from $72 to $85 and reiterated a “buy” rating on the stock.
  • Deutsche Bank raised the target price from $70 to $80 and reaffirmed a “buy” rating.

Currently, DocuSign stock is trading at $71.7.

Zoom Video trails Cloudera and DocuSign today

Zoom Video announced its earnings results for the third quarter of fiscal 2020 (year ending in January) after the market close on Thursday. The company reported revenues of $166.59 million with an adjusted EPS of $0.09. The sales rose 85% YoY in the third quarter. Analysts expected Zoom Video to post sales of $154.86 million and earnings of $0.03 in the October quarter.

In the fourth quarter, Zoom Video expects sales between $175 million and $176 million with an adjusted EPS forecast of $0.07. Analysts forecast fourth-quarter sales at $165.15 million. Meanwhile, the consensus earnings forecast is $0.04.

Zoom Video raised its 2020 guidance from $587 million–$590 million to $609 million–$610 million. The company raised the EPS forecast for 2020 from $0.18–$0.19 to $0.27. Analysts forecast sales of $588.7 million and an EPS of $0.19 in 2020.

Despite the earnings and revenue beat, analysts lowered Zoom Video’s target price due to concerns about slowing revenue growth.

  • Stifel lowered its target price from $90 to $75 and maintained a “hold” rating.
  • JPMorgan Chase reiterated an “overweight” rating as well as its target price of $125.
  • RBC Capital lowered the target price from $95 to $75 and maintained a “sector perform” rating.
  • Baird lowered the target price from $100 to $85 and maintained an “outperform” rating.

Currently, Zoom Video stock is trading at $62.33. Despite the recent decline, Zoom Video is one of the few tech IPOs that’s trading near its IPO price in 2019.