Why CommVault Shares Soared

Why CommVault Shares Soared

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of CommVault have soared today by upwards of 12% after the company reported better-than-expected earnings.

So what: Revenue in the fiscal first quarter totaled $134.4 million, topping the consensus estimate of $132.2 million. That helped CommVault post a bottom-line beat, with $0.40 per share in adjusted profit ahead of the $0.35 per share forecast.

Now what: CEO N. Robert Hammer said the company is enjoying continued demand for its Simpana 10 software platform, and operating discipline is helping the bottom line. Both software and services businesses grew sales by 20% or more, and CommVault posted a gross margin of 87%. The company continues to flirt with all-time highs as investors express optimism, despite a premium valuation.

Interested in more info on CommVault? Add it to your watchlist by clicking here.

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The article Why CommVault Shares Soared originally appeared on Fool.com.

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Originally published