2023-03-06 09:00:31 ET
MongoDB ( NASDAQ: MDB ) is slated to report fourth-quarter results on Wednesday and the developer platform company has a "low bar" to surpass, investment firm Monness, Crespi, Hardt said.
Analyst Brian White, who has a neutral rating on the stock, noted that Wall Street estimates "border on absurdity," as a consensus of analysts expect the company to earn 7 cents per share on $337.7M, well below the 41 cents and $371.6M that White is expecting.
"Even in the current environment, the Street’s [fourth-quarter] estimate of 1% [quarter-over-quarter] sales growth appears unreasonably pessimistic," White wrote in an investor note.
Delving deeper, White notes that MongoDB's ( MDB ) Atlas developer platform is starting to slow, but it's still showing strong growth and could help the company generate $359.2M in subscription revenue.
"Atlas has become quite sizeable for MongoDB, contributing 63% of [third-quarter] sales with [more than] 37,600 customers, and 61% [year-over-year] revenue growth," White added.
Looking ahead, White also notes Wall Street is underestimating results from MongoDB ( MDB ), as the analyst expects $402M in revenue and earnings of 55 cents per share, compared to Wall Street consensus of $335.9M and 13 cents per share.
Last month, investment firm Bernstein started coverage on MongoDB ( MDB ) with an outperform rating .
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MongoDB has 'low bar' to surpass going into Q4, Monness, Crespi, Hardt says