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Dec. 9, 2024, 3:37 a.m.
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C3.ai Earnings Preview and Market Insights

Brief news summary

C3.ai (NYSE:AI) is set to announce its earnings after the market closes tomorrow. Last quarter, the company reported $87.21 million in revenue, a 20.5% increase compared to the previous year, meeting revenue expectations and exceeding forecasts for EBITDA and billing. This quarter, analysts expect revenue to grow by 24.3%, reaching $91.02 million, with an anticipated adjusted loss of $0.16 per share, reflecting confidence in the company's performance. C3.ai has a history of meeting or exceeding revenue expectations over the past two years, with just one miss. In the data infrastructure sector, competitors like Elastic and Confluent reported Q3 revenue growths of 17.6% and 25% respectively, illustrating the sector's strength, with an average share price increase of 8.1% last month. C3.ai's stock has climbed 46.9%, bolstered by advancements in semiconductor stocks influenced by generative AI. Trading at $41.40, above the average analyst target of $25.55, there's ongoing debate on whether to buy or sell the stock ahead of the earnings announcement.

In This Article: Artificial intelligence (AI) software company C3. ai (NYSE:AI) will announce its earnings tomorrow after the market closes. Here’s what to watch for. Last quarter, C3. ai matched analysts’ revenue expectations, posting $87. 21 million, a 20. 5% increase year over year. The company outperformed in terms of EBITDA and exceeded billing estimates impressively. Is C3. ai a buy or sell before earnings?Read our full analysis here, it’s free. For this quarter, analysts anticipate C3. ai’s revenue will rise by 24. 3% year over year to $91. 02 million, improving from a 17. 3% growth rate in the same quarter last year. The adjusted loss is projected at -$0. 16 per share. In the last 30 days, analysts have mainly reaffirmed their estimates, indicating their expectation for the business to maintain its trajectory leading up to earnings. C3. ai has only missed Wall Street’s revenue predictions once in the past two years, typically surpassing expectations by 1. 7%. Considering C3. ai’s competitors in the data infrastructure sector, several have already reported their Q3 results, offering insights into potential outcomes.

Elastic showed a 17. 6% increase in revenue, beating projections by 3. 1%, while Confluent reported a 25% revenue growth, exceeding forecasts by 2. 1%. Following these outcomes, Elastic and Confluent saw their shares rise by 14. 7% and 13. 3%, respectively. Read our complete analysis of Elastic’s and Confluent’s results here. Investor sentiment in the data infrastructure sector has been positive, with average share prices rising 8. 1% over the past month. C3. ai’s stock has jumped 46. 9% during this period, with an average analyst price target of $25. 55, in contrast to the current share price of $41. 40. It’s evident that generative AI is set to significantly influence how large companies operate. While Nvidia and AMD approach their record highs, we favor a lesser-known yet profitable semiconductor stock benefiting from AI’s rise. Click here to access our free report on our top semiconductor growth pick. Recommended Stories


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