Snowflake (snow) fell after the enterprise software maker on Wednesday reported second-quarter profit and revenue that beat expectations and that its guidance was roughly in line with expectations.
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Snowflake said it earned 18 cents a share on an adjusted basis for the quarter that ended July 30. Analysts surveyed by FactSet had expected Snowflake to earn 16 cents a share.
The company also said its July-quarter sales rose 29% to $868 million, compared with analysts’ expectations of $852 million.
“Snowflake delivered solid performance in the second quarter with product sales of $829 million beating expectations of $814 million, although growth slowed from 34 percent in the prior quarter,” RBC Capital analyst Matthew Hedberg said in a report.
On the stock market today, Snowflake shares fell 7% to 125.55 in after-hours trading.
Snowflake Stock Guidance
For the current quarter ending in October, Snowflake said it expects product revenue to be in the range of $850 million to $855 million, compared with analysts’ expectations of $851 million.
Snowflake sells data analysis and management tools that run on cloud computing platforms such as Amazon Web Services. Amazon (Amazon).
Investor concerns about stiff competition from companies like Databricks have led to a 33% drop in Snow’s shares into 2024. Snowflake has also lagged behind rivals in developing artificial intelligence-related products.
alphabetof(Google) Mandiant Cybersecurity has worked with Snowflake to resolve recent hacking incidents that affected customers, including: AT&T (T), Ticketmaster, and Neiman Marcus.
SNOW stock earns an IBD Relative Strength Rating of 12 out of 99. IBD Stock Checkup.
Follow Reinhardt Krause on Twitter Translator The latest in artificial intelligence, cybersecurity and cloud computing.
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