MDB: A High-Flying Software Stock Likely To Report Strong Earnings

Wall Street’s fourth-quarter earnings season may be drawing to a close, but there are still several notable companies set to report their latest financial results in the coming weeks. While most of the focus has been on the ‘Magnificent 7’ mega-cap group of tech stocks, several high-flying security software companies are due to deliver their Q4 updates. One of them is MongoDB (MDB).

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  • Earnings Date: Thursday, March 7
  • Year-To-Date Performance: +10.1%
  • Market Cap: $32.5 Billion

MongoDB is a leading provider of modern, cloud-native databases. It has emerged as a key player in the rapidly evolving database market and should continue appreciating as it grows earnings, making the stock a buy ahead of its fourth-quarter update.

The cloud database-as-a-service (DBaaS) company’s Q4 print is slated to come out on Thursday, March 7, and it is expected to once again shatter expectations as the company benefits from strong demand for its open-source database offering.

Analysts have become increasingly bullish on MongoDB in recent weeks, according to an InvestingPro survey. All 19 of the analysts surveyed in the last three months upwardly revised their earnings forecast to reflect a whopping gain of 101% from their initial estimates.

The database software specialist is seen earning $0.48 a share in the fourth quarter, compared to a profit of $0.57 per share in the year-ago period.

MongoDB Forecast

MongoDB Forecast
Source: InvestingPro

Revenue is forecast to rise 20.5% year-over-year to $435.6 million, powered by strong enterprise demand for its “Atlas” open-source database software platform.

Notably, MongoDB has beaten Wall Street’s expectations for both the top and bottom line in every quarter since going public in late 2017, as organizations increasingly embrace cloud-native architectures and digital transformation initiatives.

MDB stock recently traded around $442, not far from a 52-week peak of about $510 touched on February 12. At its recent valuation, New York-based MongoDB had a market cap of $32.5 billion.

It should be mentioned that Wall Street has a long-term bullish view on MongoDB, with 33 out of the 34 analysts surveyed by rating it as either a “Buy” or a “Hold.”

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