Analysts at Monness, Crespi, Hardt are anticipating a slowdown in Snowflake’s (NYSE:SNOW) product revenue ahead of its third-quarter earnings report on November 29. Brian White, an analyst at the firm, reiterated his Hold rating on the data warehouse company’s stock.
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He expects the company’s overall revenue to rise by 32% to $733.1 million, surpassing the consensus estimate of $712.8 million. However, White forecasts a 33% increase in product sales to $695.9 million, lower than the 37% growth seen in the second quarter.
White points out that this slowdown is occurring as other cloud computing firms, like Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT), begin to see more stability and significant revenue boosts in their cloud computing segments. It’s worth mentioning that this is Snowflake’s eighth consecutive quarter where it has slowed down.
For Snowflake’s fourth quarter, White projects revenue of $772.7 million, a 31% increase from the previous year, including a 32% rise in product revenue to $731.7 million. He also anticipates an operating margin of 8.8% and earnings per share of $0.22.
These projections exceed analysts’ fourth-quarter expectations of $739.8 million in revenue and earnings of $0.16 per share.
Meanwhile, Snowflake’s stock saw a 4% increase in Tuesday’s trading session. Over the course of this year, the company’s shares have grown by 22%.
Is SNOW a Good Stock to Buy Right Now?
Analysts remain bullish on SNOW stock with a Strong Buy consensus rating based on 17 Buys and four Holds. The average SNOW price target of $192.50 implies 17.02% upside potential from current levels.
