SNOW Stock: Snowflake Earnings Top Views, stocks fall on weak outlook
snowflake (SNOW) reported a smaller-than-expected loss for the fourth quarter as sales beat Wall Street’s targets. Snowflake’s earnings report showed that its sales outlook came in well below expectations, sending SNOW shares lower.
For the quarter ended Jan. 31, Snowflake said it lost 64 cents a share, up from a loss of 43 cents a year earlier. Analysts polled by FactSet expected Snowflake to report a loss of 66 cents per share.
The company reports results in accordance with generally accepted accounting principles, or GAAP. Snowflake does not report adjusted earnings in its disclosures. Still, SNOW equity analysts forecast an adjusted loss of 5 cents per share.
Third-quarter revenue rose 53% to $589 million, the software maker said. Analysts had forecast sales of $575.9 million.
SNOW stock fell 6.8% to nearly 144 in extended trading on the stock exchange today.
SNOW Stock Outlook
For the current quarter ending April, Snowflake expects product sales to be in a range of $568 million to $573 million. Meanwhile, analysts had expected $582.1 million.
SNOW stock was up 7% in 2023 as it entered the Snowflake earnings report.
Snowflake sells data analysis and management tools that run on cloud computing platforms like Amazon Web Services, part of it Amazon.com (AMZN). Because Snowflake’s business model is consumption-based rather than subscription-based, bearish investors have raised concerns that a possible U.S. recession could dampen demand.
Weak leadership off data dog (DDOG), also an AWS partner, recently put pressure on SNOW stock.
SNOW shares have a relative strength rating of 52 out of the best possible 99, according to IBD inventory check.
Follow Reinhard Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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https://www.investors.com/news/technology/snow-stock-snowflake-earnings-snowflake-stock-q42022/?src=A00220&yptr=yahoo SNOW Stock: Snowflake Earnings Top Views, stocks fall on weak outlook