uploads/2019/08/CLOUDERA.jpeg

Is Cloudera a ‘Buy’ before Its Q1 Earnings Results?

By

Updated

On Monday, Cloudera (NYSE:CLDR) stock rose 6.9% and closed at $10.96. The stock was trading 10.3% below its 52-week high of $12.22. Meanwhile, the stock was trading 130.3% above its 52-week low of $4.76. At the closing price on Monday, Cloudera’s stock had a market cap of $3.2 billion.

What can investors expect from Cloudera’s results for the first quarter of fiscal 2021? The software company will likely post its first-quarter earnings results on Wednesday after the closing bell. Notably, the first quarter ended on April 30.

Article continues below advertisement

Cloudera’s Q1 earnings expectations

Wall Street analysts expect Cloudera to post sales of $204.6 million in the first quarter—a growth of 9.1% YoY (year-over-year) compared to $187.5 million in the first quarter of fiscal 2020. Also, analysts expect the company to post a non-GAAP EPS of $0.00 in the first quarter compared to -$0.13 in the same quarter last year.

Analysts expect Cloudera’s revenues to rise 8.1% YoY in fiscal 2021 to $858.4 million. The sales will likely rise by 9.6% YoY in fiscal 2022 to $941.0 million. Meanwhile, the EPS will rise from -$0.13 in fiscal 2020 to $0.23 in fiscal 2021. Analysts also expect an EPS of $0.37 in fiscal 2022.

Analysts’ recommendations for Cloudera

Among the 17 analysts following Cloudera stock, five recommend a “buy,” 11 recommend a “hold,” and one recommends a “sell.” Wall Street analysts’ mean target price on the stock is $11.29, which implies a 3.0% gain from the current level of $10.96. The consensus target price for the stock has fallen from $11.40 a month earlier—a decline of 1.0%.

On Monday, Jim Cramer, CNBC’s Mad Money host, said, “I think you have a winner there in Cloudera.”

Technical analysis

Based on the closing price on Monday, Cloudera stock was trading 23.1% above its 20-day moving average of $8.90. The stock is also trading 33.2% above its 50-day moving average of $8.23 and 20.4% above its 100-day moving average of $9.10. Cloudera’s 14-day relative strength index score is 80. The score indicates that the stock is overbought.

Cloudera stock has a middle Bollinger Band level of $8.90, while its lower Bollinger Band level is $7.11. On Monday, the stock closed near its upper Bollinger Band level of $10.69, which suggests that it’s overbought.

On Monday, the Dow Jones Industrial Average rose by 92 points or 0.36%. Meanwhile, the S&P 500 and the Nasdaq Composite rose 0.38% and 0.66%, respectively. Read Should US Stock Market Crash Proponents Admit Defeat? to learn more.

Stay tuned to learn how Cloudera performed in the first quarter.

Advertisement

More From Market Realist