Violin Memory Receives “Underperform” Rating from Pacific Crest (VMEM)
Violin Memory (NASDAQ:VMEM)‘s stock had its “underperform” rating reaffirmed by stock analysts at Pacific Crest in a report issued on Thursday. They currently have a $3.50 price target on the stock. Pacific Crest’s price target suggests a potential downside of 16.47% from the company’s current price.
The analysts wrote, “F2Q15 reported revenue/EPS loss were roughly in line with our $19mn/($0.21), with slightly better GM% (54.7% vs. our 52.2%) and lower opex during the quarter. Guidance too was in line with expectations with F3Q implied EPS of negative $0.19. Even so, management remains optimistic following operational/strategy changes and believes F2Q sales to mark the bottom. We remain attracted to the high-growth, flash array market, but VMEM’s continued cash-burn (expect FCF usage of $81mn for F2015 vs. 63mn prior), despite improving earnings, keeps us on the sidelines.”
Shares of Violin Memory (NASDAQ:VMEM) traded down 8.11% on Thursday, hitting $3.85. The stock had a trading volume of 714,720 shares. Violin Memory has a one year low of $2.50 and a one year high of $7.98. The stock has a 50-day moving average of $3.89 and a 200-day moving average of $3.94. The company’s market cap is $347.0 million.
Violin Memory (NASDAQ:VMEM) last announced its earnings results on Wednesday, August 27th. The company reported ($0.21) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.22) by $0.01. The company had revenue of $18.60 million for the quarter, compared to the consensus estimate of $19.06 million. During the same quarter in the previous year, the company posted ($1.64) earnings per share. The company’s revenue for the quarter was down 29.8% on a year-over-year basis. Analysts expect that Violin Memory will post $-0.83 EPS for the current fiscal year.
Separately, analysts at Deutsche Bank reiterated a “hold” rating on shares of Violin Memory in a research note on Thursday, August 7th. They now have a $4.00 price target on the stock, down previously from $4.50. Three investment analysts have rated the stock with a sell rating, five have issued a hold rating and one has assigned a buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $5.08.
Violin Memory, Inc is pioneering a new class of flash-based storage systems that are designed to bring storage performance in-line with high-speed applications, servers and networks.
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