CommVault Systems (NASDAQ:CVLT) Posts Quarterly Earnings Results, Beats Estimates By $0.14 EPS

CommVault Systems (NASDAQ:CVLT) issued its quarterly earnings data on Tuesday. The software maker reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.24 by $0.14, FiscalAI reports. The firm had revenue of $312.39 million for the quarter, compared to analysts’ expectations of $310.28 million. CommVault Systems had a net margin of 5.62% and a return on equity of 88.75%. The business’s quarterly revenue was up 13.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.91 EPS.

CommVault Systems Stock Down 1.0%

CVLT opened at $167.73 on Tuesday. The company has a debt-to-equity ratio of 16.94, a quick ratio of 2.04 and a current ratio of 2.04. CommVault Systems has a fifty-two week low of $71.75 and a fifty-two week high of $175.02. The firm’s fifty day moving average is $145.68 and its 200 day moving average is $118.31. The stock has a market cap of $6.95 billion, a price-to-earnings ratio of 106.83 and a beta of 0.79.

Wall Street Analyst Weigh In

CVLT has been the subject of a number of research reports. Cantor Fitzgerald upped their target price on shares of CommVault Systems from $132.00 to $171.00 and gave the company a “neutral” rating in a report on Monday. Piper Sandler cut CommVault Systems from an “overweight” rating to a “neutral” rating and set a $133.00 target price on the stock. in a report on Tuesday, July 28th. FBN Securities initiated coverage on CommVault Systems in a research report on Thursday, September 10th. They set an “outperform” rating and a $155.00 target price on the stock. Truist Financial boosted their price target on CommVault Systems from $155.00 to $182.00 and gave the company a “buy” rating in a report on Tuesday, July 21st. Finally, Scotiabank upped their price target on CommVault Systems from $130.00 to $160.00 and gave the stock a “sector perform” rating in a research report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and ten have given a Hold rating to the stock. According to data from MarketBeat, CommVault Systems has a consensus rating of “Moderate Buy” and an average price target of $163.19.

Insider Buying and Selling

In other CommVault Systems news, CFO Gary Merrill sold 1,854 shares of the firm’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $143.64, for a total transaction of $266,308.56. Following the sale, the chief financial officer directly owned 70,921 shares of the company’s stock, valued at $10,187,092.44. This trade represents a 2.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director A. Shane Sanders sold 476 shares of the business’s stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $134.19, for a total value of $63,874.44. Following the completion of the transaction, the director owned 8,696 shares in the company, valued at $1,166,916.24. The trade was a 5.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 29,348 shares of company stock worth $4,202,441 in the last three months. Corporate insiders own 0.86% of the company’s stock.

More CommVault Systems News

Here are the key news stories impacting CommVault Systems this week:

• Positive Sentiment: Quarterly results exceeded expectations. Commvault reported adjusted earnings of $1.38 per share, ahead of the $1.24 consensus estimate, while revenue of $312.39 million topped expectations of $310.28 million. Commvault Fiscal Q2 Earnings Snapshot
• Positive Sentiment: Recurring-revenue growth remained strong. Subscription revenue increased 21% year over year to $269 million, and subscription annualized recurring revenue rose 20% to $1.104 billion. The company also generated $75 million in operating cash flow and $71 million in free cash flow, supporting the investment case for its subscription transition. Commvault Announces Second Quarter Fiscal 2027 Financial Results
• Neutral Sentiment: Analysts raised targets but remain cautious. Jefferies lifted its target to $170 from $130 while retaining a Hold rating; Cantor Fitzgerald raised its target to $171 from $132 and maintained a Neutral rating. The revised targets suggest analysts see limited additional upside after the stock’s substantial advance. Jefferies Financial Group Ratings
• Neutral Sentiment: Short-interest data showed no significant bearish positioning. Reported short interest was zero shares, with a zero-day short-interest ratio. The unusual figure suggests limited short-selling pressure, although investors may want to treat the data cautiously. Commvault Short Interest Data
• Negative Sentiment: Valuation leaves little room for disappointment. Commvault trades at a triple-digit price-to-earnings ratio and near its 52-week high. Even with the earnings beat and strong recurring-revenue growth, the neutral ratings and targets near the current trading range could weigh on the shares unless growth continues to accelerate.

CommVault Systems Company Profile

Commvault Systems, Inc develops data protection and cyber resilience software and services for businesses, government organizations and other institutions. Its platform is designed to help customers back up, recover, manage and secure data across on-premises infrastructure, private and public clouds, software-as-a-service applications and other distributed IT environments.

The company’s offerings include backup and recovery, disaster recovery, data security, ransomware protection, cyber-recovery capabilities and data management tools.