Back to top

Image: Bigstock

C3.ai (AI) to Report Q3 Earnings: What's in the Cards?

Read MoreHide Full Article

C3.ai, Inc. (AI - Free Report) is set to report third-quarter fiscal 2021 results on Mar 1.

On Dec 11, 2020 C3.ai completed its initial public offering. Hence, the fiscal third-quarter results will be its first quarterly earnings report since becoming a publicly traded company.

The Zacks Consensus Estimate for revenues currently stands at $47.5 million.

For the quarter, the consensus mark for loss has remained steady at 16 cents per share over the past 30 days.

C3.ai is a leading provider of Enterprise AI software for accelerating digital transformation. C3.ai delivers the C3 AI Suite for developing, deploying and operating large-scale AI, predictive analytics and IoT applications.

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

C3.ai, Inc. Price and EPS Surprise

C3.ai, Inc. Price and EPS Surprise

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

Factors to Consider

C3.ai’s fiscal third-quarter performance is expected to have benefited from strong demand for its services, driven by accelerated digital modernization across major industries in response to changes in the economic environment.

Steady growth in subscription revenues and rapid adoption of the company’s model-driven AI architecture that enhance data science and application development are expected to have remained key growth drivers in the fiscal third quarter.

Additionally, growing demand for the company’s fully integrated AI products is expected to have driven top-line growth in the to-be reported quarter.

Markedly, the company offers C3 AI Suite (an end-to-end platform for developing, deploying, and operating large-scale AI applications), C3 AI Applications (a portfolio of industry-specific SaaS AI applications), C3 AI CRM (a suite of industry-specific CRM applications designed for AI and machine learning) and C3 AI Ex Machina (a no-code AI solution to apply data science to everyday business problems).

Moreover, steady renewals and strength in new customer billings from United States Air Force (USAF) Rapid Sustainment Office (RSO) and Koch Industries are expected to have aided top-line growth in the to-be reported quarter.

Further, C3.ai has been benefiting from strengthening industry and technology specific partnerships. From its industry partnerships with the likes of Baker Hughes in Oil & Gas, Raytheon in Aerospace & Defense, FIS in Financial Services, C3.ai is leveraging domain expertise to expand their customer footprint.

With its tech partners, C3 is leveraging sales capabilities besides tech and product functionality. These include partnerships with Microsoft, Adobe and Google. For instance, C3 has AI enabled Microsoft Dynamics to drive CRM differentiation including precise revenue forecasting, customer churn and others.

What Our Model Says

According to 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 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:

CrowdStrike Holdings Inc. (CRWD - Free Report) has an Earnings ESP of +13.92% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +1.21% and carries a Zacks Rank of 2, currently.

Autodesk (ADSK - Free Report) has an Earnings ESP of +2.29% and is #2 Ranked.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>