Shares of Barracuda Networks Inc (NYSE:CUDA) are down big this morning after the company released their Third Quarter Fiscal 2016 Results after the market closed yesterday.
Barracuda Networks Inc (NYSE:CUDA) reported total revenue increased year-over-year by 14% from $70.4 million to $80.1 million in the thrid quarters. GAAP net loss was $1.6 million which comes to about $0.03 per share. Non-GAAP net income came in at $4 million ($0.07 per share). Appliance revenue for the quarter came in at $21.7 million which is an increase of $1 million from last year.
Where the company did not meet guidance expectations was gross billings, which were $89.0 million compared to $91.5 million last year.
“We delivered third quarter revenue and earnings consistent with our guidance; however, billings came in below our expectations,” said BJ Jenkins, President and CEO of Barracuda Networks Inc (CUDA). “While we see various dynamics impacting billings in each of our markets, the shift from traditional and solely on-premises IT solution deployments to hybrid, public cloud and managed service solutions is accelerating faster than we expected and is becoming pervasive across more of our markets.”
The stock has dropped 31.53% or $5.18 trading at $11.25, despite this positive news. About 1.98 million shares traded hands or 362.89% up from the average. CUDA has declined 58.36% since June 4, 2015 and is downtrending. It has underperformed the S&P500 by 52.51%.
From a total of 12 analysts covering Barracuda Networks (NYSE:CUDA) stock, 9 rate it a “Buy”, 0 a “Sell”, and 3 a “Hold”. This means that 75% of the ratings are positive. The highest target price is $42 while the lowest target price is $20. The mean of all analyst targets is $30.67 which is 172.62% above today’s ($11.25) stock price. Barracuda Networks was the topic of 15 analyst reports since August 18, 2015 according to the firm StockzIntelligence Inc. BWS Financial initiated shares on October 30 with a “Buy” rating. Stifel Nicolaus initiated shares with a”Buy” rating and a $36 target share price in their report from a September 29. Topeka Capital Markets maintained CUDA stock in a recent report from October 1 with a “Buy” rating. BTIG Research initiated the rating on September 10. BTIG Research has a “Buy” rating and a $35 price target on shares. Finally, Piper Jaffray downgraded the stock to a “Neutral” rating in a report they issued on a September 30.
The institutional sentiment decreased to 0.92 in Q2 2015. It’s down 0.92, from 1.84 in 2015Q2. The ratio dropped, as 45 funds sold all their Barracuda Networks Inc shares they owned while 28 reduced their positions. 23 funds bought stakes while 44 increased their total positions. Institutions now own 36.70 million shares which is 24.64% more than the previous share count of 29.45 million in 2015Q2.
Francisco Partners Management Lp holds 53.76% of its total portfolio in Barracuda Networks Inc, equating to 6.15 million shares. Scgf Iii Management Llc owns 4.04 million shares representing 49.88% of their total US portfolio. Moreover, Scff Management Llc has 46.25% of their total portfolio invested in the company, equating to 938,591 shares. The Pennsylvania-based Hamilton Lane Advisors Llc has a total of 1.78% of their portfolio invested in the stock. Herald Investment Management Ltd, a United Kingdom-based fund reported 230,000 shares owned.
Since March 4, 2015, the stock had 0 insider purchases, and 10 insider sales for a total of $1.13 million in net activity. Hughes Michael D sold 2,300 shares worth $41,400. Faugno David sold 19,800 shares worth $585,882. Driggs Dustin sold 2,083 shares worth $52,283. Jenkins William D Jr sold 7,500 shares worth $193,430. The insider Drako Dean M sold 50,059 shares worth $1.97M.
Barracuda Networks, Inc. creates and delivers security and storage solutions. The company has a market cap of $600.85 million. The Firm offers cloud-connected solutions for its clients to address security threats, improve network performance and protect and store their data. It currently has negative earnings. The Company’s security and storage solutions are connected to its cloud services, which enable continuous software updates, offsite redundancy and distributed capacity, and are offered on a subscription basis.