HubSpot (NYSE:HUBS), which focuses on marketing software, managed to win a serious feather for its cap with its latest earnings report. It not only offered up solid outcomes from the last quarter but gave investors plenty to consider going forward. Investors responded by sending share prices on an upward burst, as HubSpot closed up 11.8% in Friday’s trading.
HubSpot turned in a winner of a quarter by any measure. It posted earnings of $1.11 per share, which were not only enough to beat figures from the fourth quarter of 2021, but also beat analysts, who looked for just $0.83 per share. Revenue also proved a win, as HubSpot brought in $469.66 million, including a hefty $458.2 million in subscriptions. Analysts only looked for HubSpot to land $446 million in revenue.
Next quarter, HubSpot expects to bring in between $473 million and $475 million. That handily beats analyst estimates, which were anticipating just $468.97 million in revenue. Meanwhile, adjusted earnings are expected between $0.82 and $0.84 per share, again readily trouncing analyst projections of just $0.61 per share. Analysts were impressed overall; Brian Peterson with Raymond James not only held his Buy rating but also hiked his target price on HubSpot shares from $360 to $500. Peterson went so far as to note that HubSpot was “…one of the most compelling long-term growth opportunities in our coverage universe.”
Overall, analyst consensus calls HubSpot a Strong Buy right now. Plus, with an average price target of $449.85, that gives it an upside potential of 11.17%.
