Waltham, MA: Sofware security firm, Carbon Black (NASDAQ:CBLK) reported its results for the fourth quarter of 2018 where it managed to beat analyst expectations. The company reported a revenue of $56.9 million which was a 27.5% increase over the corresponding quarter of the previous year and $1.23 million above the analyst consensus as per Factset. In terms of earnings, Carbon Black continues to be loss-making with an EPS of $-0.20 which was 4 cents more than analyst estimates.
This was the fourth consecutive
quarter when the company managed to beat expectations on both, the revenue
front as well as the earnings front. However, the stock price fell by more than
13% in the session after it reported these earnings. The crash can be
attributed to two factors – a weak outlook for 2019 and a key management
change.
The management’s revenue guidance
for 2019 is between $240 million and $244 million which is significantly lower
than the analyst consensus of $257.25 million. In terms of earnings, the
management expects a negative EPS of $-0.61 to $-0.64 for the year which is slightly
above the Factset estimate of $-0.69 but this wasn’t enough to prevent the
stock from plummeting.
In terms of the management
change, CFO Mark Sullivan has resigned with effect from March 11, 2019. Stephen
Webber, former CFO and COO for BackOffice Associates, is expected to become
Sullivan’s replacement and Sullivan is expected to stay in the company until
June 30, 2019 to assist with the transition process.
It is to be seen whether the
management is able to beat its guidance again and deliver a good 2019
especially after the recent slide in tech and cybersecurity stocks.
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