Some Analysts Still See Big Upside in Hortonworks After Earnings

By Chris Lange Updated Jan 13, 1:12PM EST · Published Feb 14, 10:10AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Some Analysts Still See Big Upside in Hortonworks After Earnings — © Thinkstock

Hortonworks Inc. (NASDAQ: HDP) reported its fourth-quarter earnings this past week and analysts were not exactly pleased with the results. In fact, many analysts ended up cutting their price targets on the stock, despite having a positive outlook.

24/7 Wall St. has taken into account the analysts’ reactions to the earnings and put together a montage of the calls made following the report. We also have included some highlights from the earnings report.

The company had a net loss of $0.72 per share on $37.4 million in revenue. The consensus estimates called for a net loss of $0.80 per share on revenue of $36.1 million.

Rob Bearden, CEO and chairman of the board of directors of Hortonworks, commented on earnings:

We are pleased with our fourth quarter performance, which was highlighted by support subscription revenue growth of 146% year-over-year. We more than doubled our customer base in 2015 and exited the year with over 800 customers. As evidenced by our 159% dollar-based net expansion rate over the trailing four quarters, we are excited to serve as the preferred IT partner during this transformational period in the data management industry.

[recirclink id=314808]
A few analysts recently weighed in on Hortonworks:

Credit Suisse has an Outperform rating and lowered its price target to $35 from $40.
DA Davidson has a Neutral rating and lowered the price target to $9.
Goldman Sachs has a Buy rating and cut its price target from $20 to $17.
Mizuho has a Buy rating and lowered its price target to $18 from $25.
Needham has a Buy rating and lowered its price target to $14 from $21.
Pacific Crest has an Overweight rating and lowered its price target price from $33 to $17.
Susquehanna raised it to Neutral from Negative but lowered the price target to $9 from $17.
Wunderlich Securities lowered its price target to $17 from $36.

Shares of Hortonworks closed Friday at $8.43, with a consensus analyst price target of $21.61 and a 52-week trading range of $7.12 to $28.91.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.