Snowflake (NYSE:SNOW) Announces Quarterly Earnings Results

Key Points

• Snowflake beat expectations in its quarterly results, reporting EPS of $0.39 versus the $0.32 consensus and revenue of $1.39 billion versus estimates of $1.32 billion.
• The stock fell $3.00 to $174.60 on Wednesday despite the earnings beat, and it traded above its average volume for the session.
• Analysts remain generally constructive, with a Moderate Buy consensus and an average price target of $241.51, though some firms have recently trimmed targets or maintained neutral views.

Snowflake (NYSE:SNOW - Get Free Report) announced its earnings results on Wednesday. The company reported $0.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.07, FiscalAI reports. The business had revenue of $1.39 billion for the quarter, compared to analysts' expectations of $1.32 billion. Snowflake had a negative return on equity of 50.61% and a negative net margin of 28.43%.

Snowflake Stock Performance

Shares of SNOW stock traded down $3.00 during trading hours on Wednesday, reaching $174.60. 13,653,255 shares of the company traded hands, compared to its average volume of 6,761,625. Snowflake has a 12-month low of $118.30 and a 12-month high of $280.67. The company has a debt-to-equity ratio of 1.18, a current ratio of 1.30 and a quick ratio of 1.30. The company has a market cap of $60.36 billion, a P/E ratio of -44.20 and a beta of 1.08. The firm has a 50-day moving average price of $153.74 and a 200 day moving average price of $191.29.

Insider Activity at Snowflake

In related news, SVP Vivek Raghunathan sold 3,876 shares of Snowflake stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $152.80, for a total transaction of $592,252.80. Following the sale, the senior vice president owned 273,323 shares of the company's stock, valued at approximately $41,763,754.40. This trade represents a 1.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Emily Ho sold 2,141 shares of Snowflake stock in a transaction that occurred on Monday, March 23rd. The shares were sold at an average price of $173.97, for a total value of $372,469.77. Following the sale, the chief accounting officer directly owned 44,553 shares in the company, valued at $7,750,885.41. This trade represents a 4.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 428,963 shares of company stock worth $71,996,216 in the last three months. Corporate insiders own 4.80% of the company's stock.

Institutional Trading of Snowflake

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC raised its stake in Snowflake by 90.0% during the 4th quarter. Brighton Jones LLC now owns 61,885 shares of the company's stock valued at $9,556,000 after purchasing an additional 29,320 shares during the period. Wexford Capital LP bought a new stake in Snowflake in the 3rd quarter worth approximately $241,000. Townsquare Capital LLC increased its stake in Snowflake by 15.0% in the 4th quarter. Townsquare Capital LLC now owns 1,066 shares of the company's stock worth $234,000 after acquiring an additional 139 shares during the last quarter. Glenmede Investment Management LP bought a new stake in Snowflake in the 3rd quarter worth approximately $232,000. Finally, First Manhattan CO. LLC. increased its stake in Snowflake by 6.7% in the 4th quarter. First Manhattan CO. LLC. now owns 1,022 shares of the company's stock worth $224,000 after acquiring an additional 64 shares during the last quarter. Institutional investors own 65.10% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on SNOW. Guggenheim reissued a "neutral" rating on shares of Snowflake in a research report on Wednesday, February 18th. Zacks Research raised Snowflake from a "strong sell" rating to a "hold" rating in a research report on Wednesday, March 4th. Raymond James Financial reissued an "outperform" rating on shares of Snowflake in a research report on Monday, February 2nd. Truist Financial set a $125.00 target price on Snowflake in a research report on Wednesday, April 15th. Finally, Sanford C. Bernstein lowered their price objective on Snowflake from $237.00 to $195.00 and set a "market perform" rating on the stock in a research report on Thursday, February 26th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-three have given a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $241.51.

More Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Wedbush said Snowflake could beat revenue estimates as enterprises increase AI spending on internal data infrastructure, reinforcing bullish sentiment ahead of earnings. Snowflake poised to beat Q1 estimates as AI data demand builds
• Positive Sentiment: TD Cowen reaffirmed a Buy rating and $255 price target, citing checks that pointed to a strong quarterly performance. Should You Buy, Sell, or Hold SNOW Stock Before Q1 Earnings Release?
• Positive Sentiment: Analyst coverage remains constructive overall, with expectations for Snowflake to extend its streak of earnings beats and benefit from broader AI infrastructure spending. Snowflake Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Neutral Sentiment: Snowflake is set to report earnings after the close, so shares are likely being driven by positioning ahead of results and management’s outlook for AI demand rather than by new operating data. Snowflake (SNOW) Reports Q1: Everything You Need To Know Ahead Of Earnings
• Negative Sentiment: A newly filed securities class action lawsuit creates a legal overhang that could weigh on sentiment, even if it relates to older periods. Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Snowflake, Inc. (SNOW)
• Negative Sentiment: Cantor Fitzgerald cut its price target to $225 from $250, suggesting some caution around valuation and near-term upside. Cantor Fitzgerald price target cut on Snowflake

Snowflake Company Profile

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.

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