Earnings Preview For Snowflake

Snowflake SNOW is set to give its latest quarterly earnings report on Wednesday, 2024-11-20. Here's what investors need to know before the announcement.

Analysts estimate that Snowflake will report an earnings per share (EPS) of $0.15.

Investors in Snowflake are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.02, leading to a 14.7% drop in the share price the following trading session.

Here's a look at Snowflake's past performance and the resulting price change:

Stock Performance

Shares of Snowflake were trading at $127.43 as of November 18. Over the last 52-week period, shares are down 24.56%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Observations about Snowflake

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Snowflake.

A total of 21 analyst ratings have been received for Snowflake, with the consensus rating being Buy. The average one-year price target stands at $160.14, suggesting a potential 25.67% upside.

Analyzing Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Cloudflare, GoDaddy and MongoDB, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Cloudflare, with an average 1-year price target of $92.33, suggesting a potential 27.54% downside.
• GoDaddy is maintaining an Neutral status according to analysts, with an average 1-year price target of $186.15, indicating a potential 46.08% upside.
• Analysts currently favor an Outperform trajectory for MongoDB, with an average 1-year price target of $336.39, suggesting a potential 163.98% upside.

Comprehensive Peer Analysis Summary

In the peer analysis summary, key metrics for Cloudflare, GoDaddy and MongoDB are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Snowflake ranks first in revenue growth among its peers. It has the highest gross profit margin. However, it has the lowest return on equity.

Get to Know Snowflake Better

Founded in 2012, Snowflake is a data lake, warehousing, and sharing company that came public in 2020. To date, the company has over 3,000 customers, including nearly 30% of the Fortune 500 as its customers. Snowflake's data lake stores unstructured and semistructured data that can then be used in analytics to create insights stored in its data warehouse. Snowflake's data sharing capability allows enterprises to easily buy and ingest data almost instantaneously compared with a traditionally months-long process. Overall, the company is known for the fact that all of its data solutions that can be hosted on various public clouds.

Snowflake: A Financial Overview

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Snowflake's revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 28.9%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Snowflake's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -36.47%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Snowflake's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -7.3%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Snowflake's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -4.45%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Snowflake's debt-to-equity ratio is below the industry average. With a ratio of 0.08, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

To track all earnings releases for Snowflake visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.