Barracuda Networks | $CUDA Stock | Shares Drop After Earnings Report

Barracuda Networks

Barracuda Networks, Inc. (NYSE: CUDA)


Barracuda stock, or CUDA as it is known on the street, is not doing so well in the aftermarket after they announced their earnings numbers. Many stock traders, investors, and hedge fund managers probably smile everytime they see the stock CUDA either in their portfolios or show up on stock screens.

You see, anyone born in the United States before the year of roughly 1990 is probably familiar with a popular American vehicle produced by Plymouth named the Barracuda- or Cuda for short. It was one of the coolest cars on the street(think pavement) and was produced by Plymouth between the years of 1964 and 1974.

What does that have to do with a company that is traded on the New York Stock Exchange may ask? Well,Barracuda  has also now been a favorite amongst investors and traders for some time now since the company went public in 2013. They serve an important need for Safety and Security in the cyber world as cyber attacks have gotten more dangerous and frequent in recent years.

Earning Numbers

Barracuda saw a revenue increase of about 7% ,bringing in $94.3 million which compares with $87.9 million in the second quarter of last year. Net income was $0.17 per share after adjustments for one-time gains and costs.  

This number actually met earnings estimates. So,in spite of this seemingly decent earnings figure, perhaps the street was hoping for and anticipating an earnings beat.

CUDA Comments

BJ Jenkins, president and CEO had this to say after the earnings were announced,

“We delivered a strong second quarter achieving core billings growth of 22% year-over-year and gross billings of $108.5 million, which was above our guidance. Our performance was driven by continued traction in the areas of the market where we have been investing, especially email and public cloud security, and we are pleased to see that our efforts are generating stronger top-line results, excluding non-core billings, we have generated four consecutive quarters of double-digit billings growth. We believe we have the right strategy in place, are focused on the right areas of the market, and provide innovative security solutions that are affordable and consumable in the form that is best suited for our customers’ needs.”

Barracuda Networks Charts

Barracuda Networks

The above price chart shows the daily price action. For almost the entire timeframe shown, you can see how the uptrend has held in the various four shaded regions. However, the area on the right which is oval and red is where shares will likely open on Wednesday for trading.

Barracuda Networks

The above price chart shows two regions. On the left is the intraday price action on the 5 minute chart. And on the right is the aftermarket 5 minute price action showing the drop soon after earnings were announced.

Company Profile

Barracuda Networks, Inc. designs and delivers security and data protection solutions. The company offers cloud-enabled solutions that enable customers to address security threats, enhance network performance, and protect and store their data.

It provides various security solutions, including Barracuda Essentials for Email Security that offers multi-layer cloud-based protection against email-based attacks, data loss, and business disruption; Barracuda Email Threat Scan/Barracuda Email Threat Scanner, a cloud-based service that examines Office 365 mailboxes to identify latent threats and provide administrators with an in-depth view of their risk profile; and Barracuda Web Security Gateway, a solution to protect users from Web-based threats, and enhance productivity and optimize bandwidth.

The company’s security solutions also comprise Barracuda NextGen Firewalls to secure the network, and prioritize and optimize traffic flows; Barracuda Web Application Firewall that provides reverse-proxy-based protection for applications deployed in physical, virtual, or public cloud environments, as well as protects Web applications and Websites from data breaches and downtime; and Barracuda Load Balancer ADC, an integrated platform that distributes network traffic across multiple servers or data centers to offload computing functions from backend servers and enhance application response time.

In addition, it offers data protection solutions, such as Barracuda Backup, a backup solution; and Barracuda Cloud Archiving, which provides cloud-based archiving. The company sells its appliances, services, and software products to education, government, financial services, healthcare, professional services, telecommunications, retail, and manufacturing industries through its sales personnel, distribution partners, managed service providers, and resellers in approximately 100 countries. Barracuda Networks, Inc. was founded in 2003 and is headquartered in Campbell, California.- YahooFinance