Wall Street analysts expect C3.ai, Inc. (AI) to post a quarterly loss of $0.13 per share in its upcoming report, representing a decline of 44.4% from the same period last year. Revenue is expected to be $87.12 million, up 42% from the same period last year.
The consensus estimate for EPS for the current quarter has remained unchanged over the past 30 days, which reflects how covering analysts, as a whole, have reevaluated their original expectations during this period.
Ahead of a company's earnings release, it is important to consider earnings estimate revisions as they are a key indicator for predicting potential investor behavior regarding a stock. Empirical research consistently shows a strong correlation between trends in earnings estimate revisions and near-term price movements of stocks.
While investors typically rely on consensus earnings and revenue estimates to gauge how a business is performing during a quarter, it can often help to gain deeper insight by looking at analyst forecasts for some of the company's key metrics.
With that in mind, let's take a closer look at the average forecasts for C3.ai metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts’ overall assessment is that “Revenue – Professional Services” is expected to reach $7.52 Million, with this estimate representing a -31.7% change from the same quarter last year.
Analysts' collective assessment is that “Revenue – Subscription” is estimated to be $79.61 Million. This estimate represents a year-over-year change of +29.8%.
According to analysts’ collective judgment, “Gross Margin – Professional Services” should come in at 81.3%. This forecast compares to the prior-year figure of 87%.
As per analysts' assessment, “subscription gross margins” are expected to reach 56.1%. Compared to current estimates, the company reported 50% in the same period last year.
See all C3.ai key company metrics here>>>
Over the past month, C3.ai shares have returned -14% versus a +2.6% change for the Zacks S&P 500 Composite Index. Currently, AI carries a Zacks Rank #3 (Hold), suggesting the company's performance is likely to be in line with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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