Coupa Software Stock Is Trading Higher: Here's Why

Coupa Software Inc COUP shares are trading higher Wednesday after the company reported better-than-expected financial results, issued strong earnings guidance and announced a $100 million buyback.

Q2 Results: Coupa Software said second-quarter revenue jumped 18% year-over-year to $211 million, which beat average analyst estimates of $204.02 million, according to Benzinga Pro. The company reported quarterly earnings of 20 cents per share, which beat average analyst estimates of 9 cents per share.

Coupa also announced that its board authorized a share repurchase program of up to $100 million. The buyback program is currently set to expire on Sept. 1, 2023.

Outlook: Coupa Software expects third-quarter revenue to be between $211 million and $214 million versus the estimate of $214.06 million. The company expects third-quarter earnings to be between 8 cents and 10 cents per share versus the estimate of 6 cents per share.

Coupa sees full-year revenue in a range of $838 million to $844 million versus the estimate of $840.31 million. The company expects full-year earnings to be between 37 cents and 44 cents per share versus the estimate of 26 cents per share. 

Analyst Assessment: Several analysts adjusted price targets on the stock following the company's quarterly results. 

• Piper Sandler analyst Brent Bracelin maintained Coupa with a Neutral and raised the price target from $65 to $67.
• Barclays analyst Raimo Lenschow maintained Coupa with an Equal-Weight and lowered the price target from $85 to $71.
• Citigroup analyst Steven Enders maintained Coupa with a Buy and raised the price target from $77 to $82.
• Raymond James analyst Brian Peterson maintained Coupa with an Outperform and lowered the price target from $90 to $75.
• Wells Fargo analyst Michael Turrin maintained Coupa with an Equal-Weight and lowered the price target from $80 to $65.

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COUP Price Action: Coupa has a 52-week high of $166.21 and a 52-week low of $50.54.

The stock was up 10.6% at $61.73 at time of publication.

Photo: Lorenzo Cafaro from Pixabay.