Cloud-based data provider Snowflake SNOW is set to report second-quarter earnings results on Wednesday after the closing bell. Snowflake, a Zacks Rank #3 (Hold), has handily outperformed the market year-to-date with a 27% return. With the stock pulling back in recent weeks, is Snowflake a buy heading into the release?
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Analysts are expecting SNOW to deliver quarterly earnings of 26 cents per share, which would reflect growth of 44.4% relative to the same quarter in the prior year. Estimates have remained steady over the past 60 days. Projected revenues of $1.09 billion would mark a 25% improvement versus the year-ago period.
Snowflake has beaten earnings estimates in each of the past four quarters, delivering a 34.7% average earnings surprise over that timeframe. Perhaps somewhat notably, our proprietary Earnings ESP (Expected Surprise Prediction) indicator does not conclusively predict another beat for this week’s release.
Snowflake’s cloud-based platform enables customers to drive meaningful business insights. Its consumption-based pricing model ensures users only pay for the resources they use. This model provides Snowflake with a recurring and high-margin revenue stream.
The company’s rich partner base includes numerous tech giants such as NVIDIA and Microsoft. Snowflake has evolved into an AI leader and is showing momentum this year. As always, investors should exercise caution as stocks can be volatile surrounding earnings releases.
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Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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