From Nasdaq: 2024-11-18 11:44:00

Snowflake (SNOW) is scheduled to announce its third-quarter fiscal 2025 results on Nov. 20. The Zacks Consensus Estimate for revenues is $898.77 million, a 22.42% increase from the previous year. Earnings are expected to be 15 cents per share, a 40% decrease year-over-year. SNOW has beaten earnings estimates in three of the last four quarters.

Despite challenging macroeconomic conditions and increased costs, SNOW’s top-line growth is expected to benefit from new capabilities. The company had over 400 accounts using Iceberg and 2500 accounts leveraging Snowflake AI weekly in the last quarter. SNOW shares have underperformed the sector and S&P 500, down 36.6% year-to-date.

Snowflake’s expanding portfolio, including features like Marketplace Listing Auto-Fulfillment & Monetization and Cortex LLM-powered functions, enhances its long-term prospects. The company’s collaboration with partners like Amazon, Microsoft, and NVIDIA is expected to drive growth. However, SNOW’s margins may suffer due to higher costs and tough competition.

Snowflake’s strong partner base and growing client list, including industry leaders like Disney and Pfizer, highlight its increasing adoption across sectors. However, with a Zacks Rank #4 (Sell) and stretched valuation, SNOW may be a risky bet in the near term. Investors may want to stay cautious given the company’s modest growth prospects.

Snowflake is set to report its Q3 earnings soon, presenting a dilemma for investors. With a Zacks Rank of #4 (Sell), it may be wise to approach SNOW shares with caution. Stay updated with Zacks Investment Research for the latest recommendations and insights on SNOW and other stocks in the market.



Read more at Nasdaq: Snowflake Set to Report Q3 Earnings: Buy, Hold or Sell SNOW Stock?