C3.ai (AI) Gears Up to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research
·3-min read

C3.ai AI is set to release its fourth-quarter fiscal 2024 results on May 29.

It anticipates fourth-quarter fiscal 2024 revenues to be between $82 million and $86 million.

The Zacks Consensus Estimate for revenues is pegged at $84.45 million, indicating an increase of 16.62% from the year-ago quarter’s reported figure.

The consensus mark for loss has been stable in the past 30 days at 31 cents per share. The expected loss figure is wider than the 13 cents reported in the year-ago quarter.

AI beat the Zacks Consensus Estimate in all the last four quarters, delivering an earnings surprise of 38.94% on average.

C3.ai, Inc. Price and EPS Surprise

C3.ai, Inc. Price and EPS Surprise
C3.ai, Inc. Price and EPS Surprise

C3.ai, Inc. price-eps-surprise | C3.ai, Inc. Quote

 

Let’s see how things have shaped up before the announcement.

Factors to Watch

C3.ai’s fiscal fourth-quarter performance is likely to have gained from C3 Generative AI solutions and increased demand for its Enterprise AI software. In the fiscal third quarter, AI closed 50 agreements (up 85% year over year), including 29 new pilots (up 71% year over year).

Strong momentum across generative AI solutions, owing to its introduction of C3 Generative AI to address challenges in large language models and provide multimodal solutions, is expected to have aided the company's performance in the to-be-reported quarter. At the end of the fiscal third quarter, the qualified opportunity pipeline increased 73% year over year. It closed 17 C3 Generative AI pilots across a broad range of industries.

C3.ai’s efforts to diversify its customer base and engage with clients across various industries, such as manufacturing, federal, defense, aerospace, and pharmaceuticals, are expected to have contributed significantly to revenue growth.

C3.ai’s expanding federal footprint has been a key catalyst. The C3 AI State & Local Government Suite of applications generated record bookings (up 85% year over year) and revenues (up 100% year over year) in the fiscal third quarter. State and local government generated 29% of bookings. The trend is expected to have continued in the to-be-reported quarter.

Beyond innovation and product capability, C3.ai has leveraged strong sales capabilities through strategic partnerships with tech giants like Booz Allen Hamilton, Microsoft, Amazon Web Services (AWS), and Google Cloud. In the fiscal third quarter, it closed 27 agreements through its partner network.

Partner-supported bookings grew 337% year over year and 62% quarter over quarter in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

C3.ai has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Dell Technologies DELL has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. You can find the complete list of today’s Zacks #1 Rank stocks here.

Dell is set to announce first-quarter fiscal 2025 results on May 30. DELL’s shares have increased 109.4% year to date.

HP HPQ has an Earnings ESP of +0.92% and currently carries a Zacks Rank #3.

HP is set to announce second-quarter fiscal 2024 results on May 29. HPQ shares have gained 8.8% year to date.

Broadcom AVGO currently has an Earnings ESP of +3.66% and a Zacks Rank #3.

Broadcom is set to announce second-quarter fiscal 2024 results on Jun 12. AVGO shares have returned 26.1% year to date.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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