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Snowflake (SNOW) to Post Q1 Earnings: What's in the Offing?

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Snowflake (SNOW - Free Report) is set to report its first-quarter fiscal 2024 results on May 24.

The Zacks Consensus Estimate for the top line is currently pegged at $607.47 million, suggesting growth of 43.82% year over year.

The consensus mark for the bottom line is pegged at earnings of 5 cents per share, unchanged over the past 30 days. Snowflake reported earnings of 1 cent in the year-ago quarter.

The company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 245.84%.

Snowflake Inc. Price and EPS Surprise

Snowflake Inc. Price and EPS Surprise

Snowflake Inc. price-eps-surprise | Snowflake Inc. Quote

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

Factors to Note

Snowflake’s fiscal first-quarter results are expected to benefit from an expanding clientele and strong partner base.

The company reported 31% year-over-year growth in the number of customers, reaching 7,828 in the previous quarter.

Snowflake signed 43 new customers with $1 million in trailing 12-month product revenues in the previous quarter.

It had 330 customers (with more than $1 million in product revenues), up 79% year over year, in the fiscal fourth quarter.

Snowflake is also benefiting from a strong partner base that includes the likes of Amazon, Cognizant and Dell Technologies.

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 is not the case here.

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

HP (HPQ - Free Report) has an Earnings ESP of +1.85% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

HP is likely to release its second-quarter fiscal 2023 results on May 30. HPQ shares have gained 14.2% year to date compared with the Zacks Computer & Technology sector’s return of 27%.

Greif (GEF - Free Report) currently has an Earnings ESP of +10.00% and a Zacks Rank #2.

GEF shares have lost 5.8% year to date, underperforming the Zacks Industrial Products sector, which has returned 0.4% over the same timeframe. Greif is set to report its second-quarter fiscal 2023 results on Jun 8.

Nordic American Tankers (NAT - Free Report) has an Earnings ESP of +12.82% and a Zacks Rank #2.

NAT shares have gained 21.2% year to date, outperforming the Zacks Transportation sector’s return of 4.4%. Nordic American is set to report its first-quarter 2023 results on May 22.

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


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