Earnings Preview: Snowflake Inc. (SNOW) Q3 Earnings Expected to Decline

Core Viewpoint - Snowflake Inc. (SNOW) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending October 2024, with the actual results being crucial for its near-term stock price movement [1][2]. Financial Expectations - The consensus estimate for Snowflake's quarterly earnings is $0.15 per share, reflecting a year-over-year decrease of 40% [3]. - Expected revenues for the quarter are $898.77 million, which represents a 22.4% increase compared to the same quarter last year [3]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised down by 0.13%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Snowflake is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +13.92% [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading indicates a potential earnings beat, particularly when combined with a strong Zacks Rank [8]. - Snowflake currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat despite the positive Earnings ESP [10]. Historical Performance - In the last reported quarter, Snowflake exceeded the consensus EPS estimate of $0.15 by delivering earnings of $0.18, resulting in a surprise of +20% [11]. - Over the last four quarters, Snowflake has beaten consensus EPS estimates three times [12]. Conclusion - While Snowflake does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making investment decisions related to the stock [15].