Snowflake Stock Slides 2.85% as Q4 EPS Forecast Drops 10%
Snowflake shares fell 2.85% to close at $177.10, underperforming the S&P 500's 0.10% gain, and have declined 13.35% over the past month versus the tech sector's 4.05% loss. Analysts expect February 25 earnings of $0.27 EPS (-10% y/y) on $1.25 B (+26.85% y/y) revenue, with FY EPS $1.20 (+44.6%) and revenue $4.65 B (+28.2%).
1. Stock Performance
Snowflake closed at $177.10, down 2.85% on the day, lagging the S&P 500’s 0.10% gain. Over the past month, the stock has fallen 13.35%, compared with a 4.05% decline in the Computer and Technology sector and a 1.43% drop in the S&P 500.
2. Quarterly Earnings Outlook
The company is set to report Q4 results on February 25, with analysts forecasting $0.27 EPS, a 10% decrease from last year, on revenue of $1.25 billion, up 26.85% year-over-year. Investors will focus on margin trends and subscription growth in the upcoming release.
3. Full-Year Projections
For the full fiscal year, consensus estimates project $1.20 EPS, a 44.6% increase from the prior period, and revenue of $4.65 billion, up 28.2%. These projections reflect continued adoption of the company’s data cloud platform across enterprise clients.
4. Valuation Metrics
Snowflake trades at a forward P/E of 112.92, well above the industry average of 19.23, and carries a PEG ratio of 3.22 compared with the sector average of 1.14. These premium multiples highlight market expectations for sustained high growth but also raise questions about valuation sustainability.