Q2 EPS Estimates for C3.ai Decreased by Northland Securities

Key Points

• Northland Securities trimmed its outlook for C3.ai, slightly lowering Q2 2027 EPS to a loss of $0.62 per share and also updating future-quarter and full-year estimates, which still point to continued losses.
• C3.ai’s latest earnings beat expectations, but growth remains weak. The company reported a smaller-than-expected loss of $0.33 per share, while revenue matched estimates at $51.6 million and fell 52.5% year over year.
• Analyst sentiment remains cautious, with the stock carrying an average “Reduce” rating and a consensus target price of $12.92, even as the shares traded around $10.77 and insiders have continued to sell stock.

C3.ai, Inc. (NYSE:AI - Free Report) - Research analysts at Northland Securities reduced their Q2 2027 earnings per share (EPS) estimates for C3.ai in a report released on Thursday, June 4th. Northland Securities analyst M. Latimore now forecasts that the company will earn ($0.62) per share for the quarter, down from their previous estimate of ($0.61). The consensus estimate for C3.ai's current full-year earnings is ($2.47) per share. Northland Securities also issued estimates for C3.ai's Q3 2027 earnings at ($0.60) EPS, Q4 2027 earnings at ($0.55) EPS and FY2027 earnings at ($2.43) EPS.

C3.ai (NYSE:AI - Get Free Report) last posted its quarterly earnings results on Wednesday, June 3rd. The company reported ($0.33) earnings per share for the quarter, topping the consensus estimate of ($0.38) by $0.05. C3.ai had a negative return on equity of 60.20% and a negative net margin of 187.95%.The firm had revenue of $51.60 million for the quarter, compared to analyst estimates of $51.60 million. During the same quarter in the previous year, the firm earned ($0.16) EPS. The business's quarterly revenue was down 52.5% on a year-over-year basis.

Several other research analysts have also weighed in on the stock. Needham & Company LLC restated a "hold" rating on shares of C3.ai in a research note on Thursday, June 4th. JPMorgan Chase & Co. lowered their price objective on shares of C3.ai from $10.00 to $7.00 and set an "underweight" rating on the stock in a research note on Thursday, February 26th. DA Davidson restated an "underperform" rating and set a $7.00 price objective on shares of C3.ai in a research note on Thursday, June 4th. UBS Group boosted their price objective on shares of C3.ai from $9.00 to $12.00 and gave the stock a "neutral" rating in a research note on Thursday, June 4th. Finally, BMO Capital Markets set a $7.00 price objective on shares of C3.ai in a research note on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, six have assigned a Hold rating and six have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Reduce" and a consensus target price of $12.92.

C3.ai Stock Down 0.1%

Shares of C3.ai stock opened at $10.77 on Thursday. C3.ai has a 12-month low of $7.68 and a 12-month high of $30.11. The stock has a market cap of $1.57 billion, a P/E ratio of -3.23 and a beta of 2.04. The business's 50 day moving average is $9.35 and its 200-day moving average is $11.06.

Insider Activity at C3.ai

In related news, CEO Thomas M. Siebel sold 369,624 shares of the company's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $8.72, for a total value of $3,223,121.28. Following the transaction, the chief executive officer owned 722,362 shares in the company, valued at approximately $6,298,996.64. This represents a 33.85% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Hitesh Lath sold 15,248 shares of the company's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $8.98, for a total transaction of $136,927.04. Following the completion of the transaction, the chief financial officer owned 238,308 shares in the company, valued at approximately $2,140,005.84. This trade represents a 6.01% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,586,604 shares of company stock worth $13,722,081. Insiders own 26.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the business. Larson Financial Group LLC grew its position in shares of C3.ai by 683.6% during the 3rd quarter. Larson Financial Group LLC now owns 1,481 shares of the company's stock worth $26,000 after purchasing an additional 1,292 shares in the last quarter. Parallel Advisors LLC grew its position in shares of C3.ai by 76.4% during the 3rd quarter. Parallel Advisors LLC now owns 1,849 shares of the company's stock worth $32,000 after purchasing an additional 801 shares in the last quarter. Farther Finance Advisors LLC grew its position in shares of C3.ai by 66.1% during the 4th quarter. Farther Finance Advisors LLC now owns 2,141 shares of the company's stock worth $29,000 after purchasing an additional 852 shares in the last quarter. Clearstead Advisors LLC grew its position in shares of C3.ai by 58.0% during the 3rd quarter. Clearstead Advisors LLC now owns 2,350 shares of the company's stock worth $41,000 after purchasing an additional 863 shares in the last quarter. Finally, Comerica Bank grew its position in shares of C3.ai by 839.1% during the 4th quarter. Comerica Bank now owns 2,423 shares of the company's stock worth $33,000 after purchasing an additional 2,165 shares in the last quarter. Institutional investors and hedge funds own 38.96% of the company's stock.

C3.ai News Summary

Here are the key news stories impacting C3.ai this week:

• Positive Sentiment: Northland Securities raised its Q4 2027 EPS estimate for C3.ai slightly, signaling a modestly better outlook for that period. C3.ai analyst estimate update
• Neutral Sentiment: The company’s Q2, Q3, and full-year FY2027 EPS estimates were also revised, but the changes were small and still point to ongoing losses. C3.ai analyst estimate update
• Neutral Sentiment: Recent coverage of C3.ai’s Q1 earnings call highlighted management’s turnaround plan, including sales and cost-cutting changes, after the company blamed poor execution for a steep revenue decline. C3.ai earnings call coverage
• Negative Sentiment: Despite a small earnings beat last quarter, C3.ai’s revenue fell sharply year over year, reinforcing concerns about growth and profitability. C3.ai earnings results

About C3.ai

C3.ai, Inc is a leading enterprise software provider focused on delivering scalable artificial intelligence (AI) and Internet of Things (IoT) solutions to large organizations. The company's core offering, the C3 AI Suite, is a comprehensive, model-driven platform that unifies data ingestion, model development, and application deployment. Through its suite of tools, C3.ai enables customers to accelerate digital transformation initiatives by applying advanced machine learning, predictive analytics, and AI-driven insights across a broad range of business functions.

The C3 AI Suite provides a low-code environment for data scientists and application developers to rapidly design, test, and deploy enterprise-scale AI applications.

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