Credit: Shutterstock photoOn Friday, shares of protection software and services developer Imperva, Inc. IMPV are crashing, down over 27% after the company reported its first quarter fiscal 2016 results after the bell Thursday.
Imperva reported earnings per share of a loss of $-0.74 (excluding $0.01 from non-recurring items), missing the Zacks Consensus Estimate of a loss of $-0.71 per share and decreasing 1.4% year-over-year. Revenues of $59.8 million just edged past our consensus estimate of $59.7 million and rose 34% year-over-year.
Combined product and subscription revenue increased 45% year-over-year, while services revenue growth of 41% was driven by 92% year-over-year increase on subscription revenues.
Despite these strong quarterly results, analysts at Wunderlich cut Imperva's price objective from$62.00 to $50.00. The brokerage currently has a "Buy" rating on the stock.
In addition to this price cut, Needham & Company has downgraded Imperva from "Buy" to "Hold." Analyst Scott Zeller commented that despite the company's strong momentum, "two issues blunted MarQ and are pressuring CY16: the "ease of sale" of Database and Incapsula distracted sales from Web App Firewall deals, and EMEA sales disappointed, leading to a management change. While we do not believe IMPV is seeing tougher competition, we are concerned that license growth is anemic. Further, IMPV's inching-up of CY16 and back-end loading the year raises caution."
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IMPERVA INC (IMPV): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
