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Snowflake (SNOW) to Report Q2 Earnings: What's in the Cards?

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Snowflake (SNOW - Free Report) is set to release second-quarter fiscal 2022 results on Aug 25.

The Zacks Consensus Estimate for the top line is currently pegged at $255.2 million. Moreover, the consensus mark for the bottom line has been unchanged at loss of 15 cents per share over the past 30 days.

Markedly, this would be the company’s fourth-earnings call. This Data Cloud platform provider began trading on Nasdaq from Sep 16, 2020.

Snowflake Inc. Price and EPS Surprise

Snowflake Inc. Price and EPS Surprise

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

Factors to Note

Snowflake’s second-quarter fiscal 2022 results are expected to reflect the ongoing transition from cloud-based repositories and on-premises data centers to the Data Cloud.

Strong adoption of its cloud-native solutions from Media and telecom, technology, financial services and health care customers is expected to have aided top-line growth in the to-be reported quarter. Moreover, growth in exposure to the data warehousing market and an expanding enterprise customer base are expected to have driven top-line growth.

At the end of the fiscal first quarter, the company had 4,532 total customers and 104 customers with trailing 12-month product revenues greater than $1 million, an increase from 77 customers in the previous quarter. The momentum is expected to have continued in the to-be-reported quarter.

Key Developments in Q2

In the fiscal second quarter, Snowflake expanded data offerings and capabilities on Snowflake Data Marketplace, as well as general availability of the Data Marketplace, to help customers across industries access more data in the Data Cloud for quality data insights.

Moreover, the company announced support for Unified ID 2.0 to help organizations easily enrich audience data, without sharing consumers’ personally identifiable information (PII). With Unified ID 2.0 support, Snowflake customers will be able to optimize their data-first advertising strategies by directly activating audiences on any platform that has adopted Unified ID 2.0, using Snowflake’s secure data sharing technology.

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.

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 some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:

HP Inc. (HPQ - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3, at present.

Box, Inc. (BOX - Free Report) currently has an Earnings ESP of +3.45% and a Zacks Rank of 3.

Chewy Inc. (CHWY - Free Report) currently has an Earnings ESP of +20.00% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

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