Commvault Systems is the IBD Stock Of The Day as the cloud-based data security firm hits a buy point following its March-quarter earnings report last week.
The Tinton Falls, N.J.-based company earned an adjusted $1.03 a share on revenue of $275 million in its fiscal fourth quarter ended March 31. Analysts polled by FactSet had expected earnings of 93 cents a share on sales of $262 million. On a year-over-year basis, Commvault earnings rose 30% while sales increased 23%.
Commvault also forecast revenue that was above views for its fiscal first quarter and full year.
Based on the midpoint of its outlook, it expects to generate sales of $268 million in the June quarter vs. analyst estimates for $263 million. Commvault is forecasting sales of $1.135 billion for the full year, vs. Wall Street's target of $1.1 billion.
Commvault stock rose 1.7% to close at 168.73 on April 29 after its fiscal fourth-quarter report. It ended the week at 172.55.
On the stock market today, Commvault attempted a breakout from a double-bottom base with a buy point of 174.58, according to IBD MarketSurge charts. Commvault gained nearly 1% to close at 174. Earlier in the session, it rose as high as 174.99.
Commvault offers enterprises data backup and recovery services with its "cyber resilience platform." At least five analysts raised their price targets on Commvault stock after the company's fiscal fourth-quarter report.
Oppenheimer analyst Param Singh reiterated his outperform rating on Commvault and upped his price target to 200 from 180.
"Commvault is actively targeting new customers through its branding and go-to-market strategies, which has boded well for them in the last twelve months," Singh said in a client note.
Commvault stock is on two IBD lists: IBD 50 and Tech Leaders.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
