Rubrik Q1 Earnings Preview: Stock Hits New All-Time High Ahead of Report
Rubrik Q1 Earnings Preview: Stock Hits New All-Time High Ahead of Report
Institutional investors, including Comerica Bank and NewEdge Advisors, are buying stock in the company
- Rubrik is set to report fiscal Q1 earnings on Thursday.
- Analysts expect earnings per share (EPS) to come in at -$0.32 on $260.37 million in revenue.
- But the company has beaten EPS and revenue estimates in the four quarters since it went public.
Rubrik (RBRK) is set to report earnings Thursday after the market close. The cloud data management firm started trading in April of last year when it completed its initial public offering (IPO). The stock is up about 150% since then.
Notably, Rubrik stock hit a new all-time high earlier this week after surging nearly 5% on Monday as the broader market rallied. It’s one of the most successful IPOs of 2024, and investors remain largely bullish on the stock, encouraged by tailwinds from investment in big data and artificial intelligence.
Rubrik’s business involves data management and security, and it protects data from accidental loss and security threats. Today, companies are increasingly focused on managing their data and ameliorating threats to that data, making for an expanding market for Rubrik. Grand View Research projects the big data market to grow about 15% through 2030.
Various institutional investors have purchased Rubrik stock recently, with Comerica Bank (CMA) and NewEdge Advisors buying shares since the start of the year. Research firms have also been bullish on Rubrik, with Cantor Fitzgerald increasing its price target on the stock last month.
What do analysts expect?
According to TradingView, analysts anticipate Rubrik will post earnings per share (EPS) of -$0.32 for its fiscal first quarter. Revenue is expected to cross the wires at $260.37 million. Last year, Rubrik reported an EPS of -$1.58 on $187.30 million in revenue. Last quarter, Rubrik posted an EPS of -$0.18 on $258.10 million in revenue.
Rubrik has beaten EPS and revenue expectations in all four quarters since it started trading. That said, analysts have likely been too pessimistic about its business model, but the lack of financial reporting history makes it difficult to properly forecast its performance.
There are 20 strong buy and buy ratings of the stock, three hold ratings and no sell or strong sell ratings. The average one-year price target for Rubrik is $89.30, which would be about a 9% drop from Wednesday’s 98.18 trading price.
Trading Rubrik earnings
Rubrik currently trades with an implied volatility rank (IVR) of 63.5, meaning volatility is slightly elevated compared to the past 12 months of trading. The options market expects an implied move of +/- 16.57 points based on the June 20 options expiration. That translates to a +/- 17% move based on the current stock price.
With Rubrik trading near its recent all-time high, investors may need to see EPS and revenue beat expectations for the stock to make fresh all-time highs. Given that Rubrik has beaten estimates in every quarter since it went public, that may be the case. However, it also opens the door to a large pullback if the company disappoints.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. #@fxwestwater
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