Bit of a surprising sell-off here as well, despite beating expectations the stock is 12% down:
Tableau Software Inc
Yesterday, Tableau Software announced first-quarter results that handily topped Wall Street estimates, with non-GAAP EPS of breakeven versus consensus of ($0.10), and revenue of $172 million, versus consensus of $164 million. However, the stock is down over 10% following negative comments issued by analysts at Mitsubishi UFJ.
JMP’s Greg McDowell noted that he would use the pullback in the share price as an opportunity to own a company that is cash flow positive, taking market share, and trading for only 2.8x EV/2017E revenue, a significant discount to its high-growth peer group.
McDowell wrote, “The revenue upside was due in part to better-than-expected license revenue driven by more new customers than we were expecting (3,500 versus our estimate of 3,200) and 268 deals over $100k (versus our estimate of 250). Tableau guided above consensus for revenue, and perhaps more importantly almost doubled its operating income and EPS expectation for the year.”
“We raise our 2016 non-GAAP EPS estimate to $0.53 from $0.27, versus consensus of $0.34, and raise our 2017 non-GAAP EPS estimate to $0.72 from $0.45, versus consensus of $0.67. Our $75 price target is based on 5x EV/2017E revenue, roughly in line with the median of the high-growth software group,” the analyst continued.