U.S. stocks edge higher; solid earnings season continues
SAN FRANCISCO - Samsara Inc. (NYSE:IOT), a leader in connected operations cloud technology, announced its first-quarter earnings, surpassing analyst expectations with an adjusted EPS of $0.03, which was $0.02 higher than the consensus estimate of $0.01.
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The company's revenue for the quarter reached $280.7 million, also beating the consensus estimate of $272.42 million, and marking a 37% increase YoY.
Despite the earnings beat, Samsara's stock fell by 7% following the announcement. The company's guidance for the second quarter of 2025 projects an EPS ranging from $0.00 to $0.01, which at the midpoint is in line with the analyst consensus of $0.01. Revenue guidance for Q2 is set between $288 million and $290 million, with the midpoint slightly above the consensus estimate of $287.3 million.
For the full fiscal year 2025, Samsara anticipates an adjusted EPS between $0.13 and $0.15, with the midpoint surpassing the consensus of $0.12, and revenue guidance ranging from $1.205 billion to $1.213 billion, which is also above the consensus estimate of $1.2 billion.
CEO and co-founder Sanjit Biswas commented on the results, stating, "We delivered a strong first quarter of the new fiscal year with Q1 revenue of $280.7 million, growing 37% YoY, the same YoY adjusted revenue growth as last quarter at a larger scale. As the strategic partner to the world’s leading and most complex physical operations organizations, we are focused on delivering clear and fast ROI for our customers and improving their operations."
Despite the positive performance in the first quarter and the optimistic guidance for the upcoming quarters, the stock's decline suggests that investors may have had higher expectations for the company's financial outlook or are reacting to broader market trends.
Samsara's robust customer growth, with a 43% increase YoY in customers with an ARR over $100,000, underscores the company's expanding market presence and the increasing demand for its connected operations solutions.
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