Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Citizens JMP analyst Patrick Walravens adjusted the price target for C3.ai (NYSE:AI) to $50.00, down from the previous target of $55.00, but kept a Market Outperform rating on the shares. According to InvestingPro data, the stock currently shows high volatility with a beta of 1.97, while analyst targets range from $15 to $56. The revision followed C3.ai’s announcement of its third-quarter fiscal year 2024 earnings, which delivered mixed results. The company reported non-GAAP earnings per share (EPS) of ($0.12), which was better than the consensus estimate of ($0.25). Revenue came in at $98.8 million, slightly above the consensus forecast of $98.1 million and representing a 26% year-over-year increase, although this was a decrease from the previous quarter’s 29% growth rate. InvestingPro analysis reveals the company maintains strong liquidity with a current ratio of 7.52 and holds more cash than debt on its balance sheet, though it remains unprofitable with a negative EBITDA of $301.44 million over the last twelve months.
The report also detailed C3.ai’s subscription revenue, which amounted to $85.7 million, marginally surpassing the consensus estimate of $85.4 million. This figure indicated a 22% growth compared to the same period last year but showed no change from the preceding quarter. However, the company experienced a larger-than-expected free cash flow deficit of ($22.4 million) against the anticipated ($18.4 million).
Following the release of these financial outcomes, C3.ai’s stock experienced a downturn of approximately 6% in after-market trading. This decline added to the company’s year-to-date (YTD) performance, which has seen the stock fall by 23%, in contrast to the S&P 500 and Russell 3000 indices, both of which have seen a 1% increase over the same period. The updated price target and maintained rating reflect the analyst’s ongoing optimism about the stock’s potential despite the recent financial results and market reaction.
In other recent news, C3.ai reported fiscal third-quarter results that surpassed analyst expectations. The company posted an adjusted earnings per share of -$0.12, beating the anticipated -$0.24. Revenue for the quarter reached $98.8 million, slightly exceeding the consensus estimate of $98.01 million and marking a 26% increase year-over-year. However, C3.ai’s guidance for the fourth quarter and the full fiscal year 2025 aligned closely with Wall Street’s projections, which may not have met investor hopes for more robust growth. The company forecasted Q4 revenue between $103.6 million and $113.6 million, while analysts expected $108.6 million. For the full year, C3.ai anticipates revenue between $383.9 million and $393.9 million, compared to the consensus of $388.3 million. The company highlighted its partnerships with Microsoft (NASDAQ:MSFT), AWS, and McKinsey QuantumBlack as significant growth drivers, closing 66 agreements in the quarter. Subscription revenue, comprising 87% of total revenue, grew 22% year-over-year to $85.7 million. C3.ai concluded the quarter with $724.3 million in cash and marketable securities.
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