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

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.

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.