Insights Into C3.ai (AI) Q2: Wall Street Projections for Key Metrics

Wall Street analysts forecast that C3.ai, Inc. (AI) will report quarterly loss of -$0.32 per share in its upcoming release, pointing to a year-over-year decline of 433.3%. It is anticipated that revenues will amount to $75.14 million, exhibiting a decrease of 20.3% compared to the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

That said, let's delve into the average estimates of some C3.ai metrics that Wall Street analysts commonly model and monitor.

It is projected by analysts that the 'Revenue- Professional services' will reach $9.63 million. The estimate points to a change of -26.9% from the year-ago quarter.

The combined assessment of analysts suggests that 'Revenue- Subscription' will likely reach $68.44 million. The estimate indicates a change of -15.7% from the prior-year quarter.

Analysts' assessment points toward 'Gross margin- Professional services' reaching 77.3%. The estimate is in contrast to the year-ago figure of 89.0%.

The collective assessment of analysts points to an estimated 'Gross margin- Subscription' of 40.2%. Compared to the present estimate, the company reported 57.0% in the same quarter last year.

Over the past month, C3.ai shares have recorded returns of -19.3% versus the Zacks S&P 500 composite's +0.4% change. Based on its Zacks Rank #3 (Hold), AI will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research