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Wednesday, KeyBanc analysts, led by Eric Heath, increased their price target on CommVault Systems (NASDAQ:CVLT) stock to $195.00 from $192.00, while maintaining an Overweight rating. The revision comes after CommVault reported a solid fiscal third quarter organic Annual Recurring Revenue (ARR) that exceeded expectations despite foreign exchange headwinds and the nuances of its Clumio acquisition. According to InvestingPro data, six analysts have recently revised their earnings estimates upward, with the stock delivering an impressive 96% return over the past year.
CommVault’s organic, foreign exchange-adjusted fiscal third quarter net new ARR outperformed consensus estimates by approximately $3 million. Clumio, a recent acquisition, added $24 million to the company’s ARR for the quarter, which is twice the amount expected by consensus, estimated around $12 million. The company’s fiscal year 2025 ARR guidance was also increased by roughly $8 million on an organic, constant currency basis. With an exceptional gross profit margin of 82% and a "GREAT" financial health score from InvestingPro, CommVault demonstrates strong operational efficiency.
The fiscal third quarter results have reinforced KeyBanc’s confidence in CommVault’s market position. The company is gaining traction as a cyber resilience vendor within the backup and recovery market, which is seen to be growing at an accelerating pace. The raised price target to $195 reflects higher estimates based on the company’s performance.
In summary, the analyst’s remarks underscored a positive outlook for CommVault, highlighting the company’s ability to beat ARR expectations and raise future guidance amid challenges. The upward adjustment in price target reflects a belief in the company’s continued growth and execution in the evolving cyber resilience landscape.
In other recent news, Commvault Systems reported robust fiscal third quarter results that surpassed expectations. The data management software company posted adjusted earnings of $0.94 per share, which exceeded the analyst estimates of $0.87 per share. Revenue for the quarter rose 21% year-over-year to $262.6 million, outperforming the consensus forecast of $245.93 million. Commvault’s subscription revenue, a significant growth metric, saw a 39% increase to $158.3 million, and total annualized recurring revenue grew 18% to $890 million.
These are recent developments that have shed light on the company’s performance. Looking ahead, Commvault has projected fourth quarter revenue to be between $260 million and $264 million, surpassing Wall Street’s expectation of $251.3 million. For the full fiscal year 2025, the company raised its revenue guidance to a range of $980 million to $985 million, which is above the consensus estimate of $955 million. CEO Sanjay Mirchandani attributed the strong performance to the company’s innovative approach to cyber resilience, which has helped secure large net-new accounts and fuel business expansion.
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