Software company MongoDB (MDB) is set to report its Q3 earnings results on December 1 after the market closes. The stock has climbed about 40% year-to-date, helped by improving growth trends in its Atlas cloud platform, rising AI-related workloads, and stronger enterprise demand. Analysts are expecting earnings per share to come in at $0.81 on revenue of $593.93 million. This equates to a decrease in EPS from $1.16 but an increase in revenue from $529.4 million on a year-over-year basis.
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However, it’s worth noting that MDB has been beating earnings estimates for years now, and often by wide margins, as its customer count continues to grow steadily each quarter.
Analysts’ Views on MDB Ahead of Q3 Results
Ahead of the Q3 print, Truist Securities analyst Miller Jump reiterated a Buy rating and a $400 price target on the stock. He said MongoDB’s Atlas growth has improved year-over-year in each of the first two quarters. After speaking with several large customers, he believes MongoDB is seeing momentum from AI-related workloads, database migration, and continued preference over Postgres in some use cases.
Jump said these trends suggest strong demand, and he expects MongoDB to deliver results above expectations when it reports earnings on December 1.
Similarly, Bernstein SocGen analyst Firoz Valliji kept a Buy rating on MongoDB stock with a $338 price target. He said the company started the year slowly, but the last two quarters were strong, leading management to raise full-year growth guidance from 12.5% to 17.1%. Valliji also lifted his own forecast to 19% from 18%.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 8.54% move in either direction.
Is MDB Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MDB stock based on 26 Buys and four Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average MDB price target of $384.51 per share implies 18% upside potential.
