Wall Street analysts expect C3.ai, Inc. (AI) to post quarterly loss of -$0.29 per share in its upcoming report, which indicates a year-over-year decline of 141.7%. Revenues are expected to be $75.82 million, down 23.2% from the year-ago quarter.
The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific C3.ai metrics that are commonly monitored and projected by Wall Street analysts.
Analysts predict that the 'Revenue- Professional services' will reach $7.48 million. The estimate indicates a year-over-year change of -42.9%.
The collective assessment of analysts points to an estimated 'Revenue- Subscription' of $68.32 million. The estimate points to a change of -20.3% from the year-ago quarter.
Based on the collective assessment of analysts, 'Gross margin- Professional services' should arrive at 74.1%. The estimate compares to the year-ago value of 80.0%.
The average prediction of analysts places 'Gross margin- Subscription' at 49.9%. Compared to the current estimate, the company reported 56.0% in the same quarter of the previous year.
View all Key Company Metrics for C3.ai here>>>
C3.ai shares have witnessed a change of -17.5% in the past month, in contrast to the Zacks S&P 500 composite's -0.8% move. With a Zacks Rank #4 (Sell), AI is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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C3.ai, Inc. (AI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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