Enterprise AI software company C3.ai (NYSE: AI) will be announcing earnings results this Wednesday after market hours. Here’s what to expect.
C3.ai missed analysts’ revenue expectations last quarter, reporting revenues of $53.26 million, down 46.1% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations significantly.
Is C3.ai a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting C3.ai’s revenue to decline 53.5% year on year, a reversal from the 25.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. C3.ai has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at C3.ai’s peers in the data and analytics software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Elastic delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 0.9%, and Teradata reported revenues up 6.2%, topping estimates by 3.4%. Elastic traded up 12.5% following the results while Teradata’s stock price was unchanged.
Read our full analysis of Elastic’s results here and Teradata’s results here.
There has been positive sentiment among investors in the data and analytics software segment, with share prices up 16.4% on average over the last month. C3.ai is up 27.4% during the same time and is heading into earnings with an average analyst price target of $8.91 (compared to the current share price of $11.75).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
