Earnings Preview: C3.ai, Inc. (AI) Q3 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for C3.ai, Inc. due to lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - C3.ai is expected to report a quarterly loss of $0.29 per share, reflecting a year-over-year change of -141.7% [3]. - Revenues are projected to be $75.82 million, down 23.2% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for C3.ai is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -9.40% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with significant predictive power for positive readings only [9][10]. - C3.ai currently holds a Zacks Rank of 4, making it challenging to predict an earnings beat [12]. Historical Performance - In the last reported quarter, C3.ai was expected to post a loss of $0.32 per share but delivered a loss of -$0.25, resulting in a surprise of +21.88% [13]. - The company has beaten consensus EPS estimates in the last four quarters [14]. Industry Comparison - CoStar Group, another player in the IT Services industry, is expected to report earnings per share of $0.27, indicating a year-over-year change of +3.9% [18]. - CoStar's revenues are projected to be $891.08 million, up 25.6% from the previous year [18].