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

U.S. prosecutors identified two hackers behind a massive AT&T Inc data breach.

What Happened: The alleged hackers, Connor Moucka and John Binns, reportedly gained unauthorized access to AT&T’s data systems hosted on cloud data platform Snowflake Inc .

Around 50 billion customer call and text records were stolen, TechCrunch reports.

See Also: Trump, Vance’s Phone Data Reportedly Compromised By Chinese Cyber Group

The Department of Justice filed the indictment on Sunday, revealing the full scale of the data compromise.

Although the document refers to “Victim-2,” a major U.S. telecommunications company, the timeline and details align closely with AT&T’s disclosures made in April. According to AT&T’s statements, the breach exposed records such as call logs and text metadata.

Why It Matters: Prosecutors claim that Moucka and Binns successfully extorted at least three victims, demanding Bitcoin ransom payments worth approximately $2.5 million.

The hackers allegedly targeted the compromised data over a year-long campaign in November 2023, when they demanded ransom from multiple companies.

Several other Snowflake customers, including Santander Bank and Ticketmaster, experienced similar breaches.

Hackers infiltrated these companies’ Snowflake-hosted data, extracting susceptible personal and corporate information. Reports indicate that the stolen data encompassed social security numbers, driver’s licenses, and banking information.

Moucka was apprehended in Canada last week. Binns had previously been detained in Turkey. Their arrest comes after months of investigation into a string of cyberattacks affecting U.S. companies through Snowflake’s data platform.

In the aftermath, AT&T reportedly paid a ransom of $370,000 to secure the deletion of stolen records. In August, Snowflake CEO Sridhar Ramaswamy stated that Snowflake’s core business remains unaffected by the recent cyberattack despite a dip in stock prices. Ramaswamy clarified the breach stemmed from weak customer security measures, not flaws in Snowflake’s platform, impacting clients like AT&T and Live Nation.

Price Action: AT&T gained over 28% year-to-date. The stock closed lower by 0.72% at $22.15 on Tuesday. Snowflake closed higher by 1.59%.

Now Read:

• Amazon Confirms Vendor Data Breach Affecting 2.8M+ Employee Contacts, Adds To Growing List Of MOVEit Hack Victims

Image: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Intuitive Surgical, Inc. is a “fantastic company with an expensive stock,” according to CNBC's Jim Cramer.

On Oct. 17, Intuitive Surgical reported third-quarter revenue of $2.04 billion, beating the consensus estimate of $2 billion.

During the latest edition of “Mad Money Lightning Round,” Cramer said Energy Transfer LP is a buy.

Energy Transfer reported quarterly earnings of 32 cents per share which missed the analyst consensus estimate of 37 cents per share. The company reported quarterly sales of $20.772 billion which missed the analyst consensus estimate of $22.297 billion.

“Let it ride,” Cramer said when asked about T-Mobile US, Inc. .

On Oct. 23, T-Mobile reported quarterly earnings of $2.61 per share, which beat the analyst consensus estimate of $2.41 per share.

Cramer recommended buying Constellation Energy Corporation . “I think it still works higher,” he added.

On Nov. 4, Constellation Energy reported third-quarter results and revised its FY24 adjusted EPS guidance, which is below estimates.

When asked about International Business Machines Corporation , he said, “I think we can hold it.”

On Oct. 23, IBM reported third-quarter revenue of $14.968 billion, missing the consensus estimate of $15.07 billion, according to Benzinga Pro.

The Mad Money host said he is not recommending Snowflake Inc. . “I think they have a lot of companies that are up against them,” he noted.

On Nov. 11, Keybanc analyst Eric Heath maintained Snowflake with an Overweight and lowered the price target from $168 to $150.

Price Action:

• Energy Transfer shares fell 1.1% to settle at $17.05 on Tuesday.
• Intuitive Surgical shares gained 0.3% to close at $537.07.
• T-Mobile shares rose 0.3% to close at $239.00 on Tuesday.
• Constellation Energy shares fell 3.6% to settle at $228.70 during the session.
• IBM shares fell 0.5% to close at $210.86 on Tuesday.
• Snowflake shares gained 1.6% to settle at $125.46.

Read Next:

• Top 3 Tech And Telecom Stocks Which Could Rescue Your Portfolio In Q4

Courtesy of Intuitive Surgical

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Wireless Ronin Technologies Inc. (CREX) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to loss of $0.07 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 125%. A quarter ago, it was expected that this company would post a loss of $0.06 per share when it actually produced a loss of $0.06, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Wireless Ronin Technologies, which belongs to the Zacks Internet - Software industry, posted revenues of $14.44 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 3.75%. This compares to year-ago revenues of $11.57 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Wireless Ronin Technologies shares have added about 87.7% since the beginning of the year versus the S&P 500's gain of 25.5%.

What's Next for Wireless Ronin Technologies?

While Wireless Ronin Technologies has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Wireless Ronin Technologies: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.04 on $17.35 million in revenues for the coming quarter and -$0.07 on $56.67 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Soho House & Co (SHCO), is yet to report results for the quarter ended September 2024.

This operator of members-only luxury hotels and clubs under the Soho House brand is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +95.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Soho House & Co's revenues are expected to be $334.62 million, up 11.2% from the year-ago quarter.

Zacks Investment Research

EverCommerce (EVCM) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.01. This compares to break-even earnings per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -400%. A quarter ago, it was expected that this business software company would post a loss of $0.01 per share when it actually produced a loss of $0.02, delivering a surprise of -100%.

Over the last four quarters, the company has not been able to surpass consensus EPS estimates.

EverCommerce, which belongs to the Zacks Internet - Software industry, posted revenues of $176.26 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.27%. This compares to year-ago revenues of $174.74 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

EverCommerce shares have added about 10.2% since the beginning of the year versus the S&P 500's gain of 25.8%.

What's Next for EverCommerce?

While EverCommerce has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for EverCommerce: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $168.34 million in revenues for the coming quarter and -$0.09 on $689.88 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Soho House & Co (SHCO), has yet to report results for the quarter ended September 2024.

This operator of members-only luxury hotels and clubs under the Soho House brand is expected to post quarterly loss of $0.01 per share in its upcoming report, which represents a year-over-year change of +95.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Soho House & Co's revenues are expected to be $334.62 million, up 11.2% from the year-ago quarter.

Zacks Investment Research

Snowflake Inc. (SNOW) ended the recent trading session at $125.46, demonstrating a +1.59% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 0.09%.

The company's stock has climbed by 0.28% in the past month, falling short of the Computer and Technology sector's gain of 3.2% and the S&P 500's gain of 3.3%.

The investment community will be closely monitoring the performance of Snowflake Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on November 20, 2024. The company is expected to report EPS of $0.15, down 40% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $898.77 million, up 22.42% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and a revenue of $3.53 billion, representing changes of -40.82% and +25.78%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Snowflake Inc. is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 212.41. This represents a premium compared to its industry's average Forward P/E of 32.89.

It is also worth noting that SNOW currently has a PEG ratio of 31.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.52 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Zacks Investment Research