Artificial intelligence (AI) software company C3.ai (NYSE:AI) will be announcing earnings results tomorrow after the bell. Here’s what to expect.
C3.ai beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $98.78 million, up 26% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ EBITDA estimates but a significant miss of analysts’ billings estimates.
Is C3.ai a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting C3.ai’s revenue to grow 24.6% year on year to $107.9 million, improving from the 19.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. C3.ai has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.
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. Confluent delivered year-on-year revenue growth of 24.8%, beating analysts’ expectations by 2.6%, and Teradata reported a revenue decline of 10.1%, falling short of estimates by 2.4%. Confluent traded down 18.2% following the results while Teradata was up 1.8%.
Read our full analysis of Confluent’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 7.3% on average over the last month. C3.ai’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $30.21 (compared to the current share price of $22.70).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.