C3.ai Sees 54.3% Revenue Drop and 93.8% EPS Decline, Rated Sell
C3.ai shares have fallen 20.8% over the past month while its IT services industry dropped 10.2%. Analysts expect a $0.31 loss per share this quarter, down 93.8% year-over-year, and $49.71 million revenue, down 54.3%, giving it a Zacks Rank #4 (Sell).
1. Recent Share Performance
Over the past month, C3.ai shares have declined 20.8% compared with a 10.2% drop in the Computers – IT Services industry. This underperformance reflects growing investor concern over the company’s near-term growth prospects.
2. Earnings Estimate Revisions
For the current quarter, consensus EPS is a $0.31 loss per share, a 93.8% year-over-year deterioration, with estimates unchanged in the last 30 days. Full-year forecasts call for a $1.23 loss (-200% year-over-year) and a rebound to $1.02 EPS next fiscal year, up 17.2% from a year ago and 2% higher than a month prior.
3. Revenue Forecast Declines
Analysts project $49.71 million in revenue this quarter, down 54.3% year-over-year, with full-year sales of $255.4 million (-34.4%) and $248.35 million next year (-2.8%). Last quarter’s $53.26 million in revenue fell 46.1% year-over-year and missed consensus by 29.8%.
4. Zacks Ranking and Valuation
C3.ai holds a Zacks Rank #4 (Sell) reflecting recent downward estimate revisions and mixed forecast trends. Its Zacks Value Style Score of F indicates the stock trades at a premium to peers based on valuation multiples.