TLDR
- Snowflake shares surge 5.07% in pre-market trading ahead of Q2 earnings
- JMP Securities holds Market Outperform rating with $260 price target
- Earnings per share expected to rise 50% to $0.27 from $0.18 year-over-year
- Analyst price targets range from $205 to $277 across Wall Street firms
- Stock has gained 26% year-to-date, beating major market indices
Snowflake stock opened higher Wednesday, climbing 5.07% in pre-market trading before the company’s second-quarter earnings release. The cloud data platform is set to report results after market close.
JMP Securities maintained its Market Outperform rating with a $260 price target. The firm’s analysis of 27 data points showed 85% positive indicators this quarter. This improved from 50% positive indicators in the previous quarter.
Wall Street analysts show varying confidence levels in Snowflake’s prospects. Price targets span from $205 to $277, reflecting different views on growth potential. The current trading price of $194.68 suggests upside based on most forecasts.
Earnings Expectations Rise for Q2
Consensus estimates predict earnings per share will reach $0.27, up from $0.18 in the same quarter last year. This represents 50% growth year-over-year for the data cloud company.
The company has expanded AI capabilities through partnerships and platform enhancements. A recent collaboration with Domo focuses on cloud integration features. These initiatives could impact investor sentiment around earnings.
Multiple analyst firms have weighed in recently. DA Davidson maintains a Buy rating at $250, citing momentum in core data warehouse offerings. TD Cowen also holds Buy at $240, highlighting stable consumption patterns.
KeyBanc Capital Markets supports Overweight with a $250 target. The firm noted progress in data warehouse migration and engineering adoption. However, Guggenheim stays Neutral, suggesting beating consensus may prove difficult.
Stock Performance Beats Market
Snowflake shares have gained 26% year-to-date, outperforming the S&P 500 and Russell 3000’s 9% gains. The company carries a $65.1 billion market valuation despite not yet being profitable.
Analysts expect Snowflake to achieve profitability this year. This potential milestone adds weight to the upcoming earnings announcement. Trading volatility typically increases around quarterly reports.
A MIT study found only 5% of AI pilots generate millions in value for businesses. Most implementations show no measurable profit impact. This context may influence how investors view Snowflake’s AI strategy.
The earnings report will include updated revenue guidance and customer metrics. These figures will help determine if recent stock gains reflect underlying business strength. Investors should prepare for potential price swings following results.
