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Snowflake (SNOW) to Post Q3 Earnings: What's in the Offing?

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Snowflake (SNOW - Free Report) is set to report its third-quarter fiscal 2023 results on Nov 30.

The Zacks Consensus Estimate for the top line is currently pegged at $535.81 million, suggesting growth of 60.21% year over year.

The consensus mark for the bottom line is pegged at a loss of 3 cents per share, unchanged over the past 30 days and narrower than the loss of 4 cents reported in the year-ago quarter.

Snowflake’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 150%.

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 third-quarter results are expected to benefit from an expanding clientele and strong partner base.

The company reported 36% year-over-year growth in the number of customers, reaching 6,808 in the fiscal second quarter. The company added 12 Forbes Global 2000 customers.

Snowflake signed 15 new customers with $1 million in trailing 12-month product revenues in the reported quarter.

It had 246 customers (with more than $1 million in product revenues), up 112% year over year, in the fiscal second 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:

GIII Apparel Group (GIII - Free Report) has an Earnings ESP of +0.68% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

GIII Apparel is likely to release its fourth-quarter fiscal 2023 results soon. GIII shares have been down 22.2% year to date compared with the Zacks Computer & Technology sector’s decline of 31.2%.

AutoZone (AZO - Free Report) has an Earnings ESP of +2.91% and a Zacks Rank #3. AZO is scheduled to release its first-quarter fiscal 2023 results on Dec 6.

AutoZone shares are up 20% year to date, outperforming the Zacks Computer & Technology sector.

Adobe (ADBE - Free Report) has an Earnings ESP of +0.03% and a Zacks Rank #3. It is likely to release its fourth-quarter fiscal 2022 results soon.

ADBE shares have been down 40.8% year to date, underperforming the Zacks Computer & Technology sector.

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

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