Commvault Systems, Inc. (NASDAQ:CVLT) shares plunged more than 14% yesterday after the company announced its preliminary unaudited financial results for Q3, expecting total revenues to be $195.1 million (down 4% year-over-year), missing the consensus estimate of $204 million.
The company explained that the reason for the slowdown in orders was slower purchasing habits and difficulties in closing deals. However, they remain optimistic about their overall strategy and are willing to adapt their expenses in response to changes in demand.
Following the announcement, analysts at RBC Capital cut their Q3 revenue/EPS estimate to $195.1 million/ $0.62 from $203.5 million/$0.69. The analysts reduced their fiscal 2024 revenue/EPS estimates to $788.0 million/$2.55 from $832.0 million/$2.78 and their fiscal 2025 revenue/EPS estimates to $844.0 million/ $2.81 from $894.0 million/$3.09. The analysts cut their price target to $63 from $66, while maintaining their Sector Perform rating.