Analysts are bullish on Snowflake heading into earnings and expect another beat
Analysts on Wall Street think Snowflake is set to deliver another strong quarterly report despite a difficult macroeconomic backdrop. The consensus from analysts at firms ranging from Goldman Sachs to Evercore ISI to Needham is that the cloud-based data storage company's results will largely show that it's been able to shake off macroeconomic concerns tied to President Donald Trump's tariffs, while demand from large-scale data centers and cloud service providers remains robust. Analysts said they will also be listening for updates on Snowflake's artificial intelligence push. "Though no company is immune to the macro, we believe that SNOW's consumption revenue is more durable today vs. the last macro pullback and we believe that our/Street estimates already incorporate a fairly healthy level of conservatism," Evercore ISI analyst Kirk Materne wrote in a note last week. Analysts polled by FactSet estimate Snowflake will report fiscal first-quarter earnings of 21 cents per share on revenue of about $1 billion when results for the three months ended April 30 are released Wednesday. Here's a closer look at what analysts are looking for in Snowflake's latest quarter: Goldman Sachs, buy rating, $205 per share price target Analyst Kash Rangan expects little downside risk for the company's full-year outlook, as Snowflake's management view hasn't materially changed from a year ago. Rangan's price target implies roughly 13% upside from Monday's $182.05 close. "We see potential for beat and flow-through, supported by Datadog and Hyperscalers seeing stable consumption trends in April that serve as positive read-throughs for Snowflake," Rangan said. "Furthermore, we see limited risk to FY26 guidance, underpinned by Management's unchanged philosophy vs. FY25 with considerations of a weaker FY25 starting point (see discussion with company): CEO transition, slower-than-anticipated usage trends, and added conservatism around potential Storage Revenue headwinds." Needham, buy, $215 target Analyst Mike Cikos' price target calls for 18% upside, fueled by expectations that some of Snowflake's potential first-quarter upside will pass through in to its full-year outlook. "We anticipate the magnitude of Revenue outperformance will be in line with management's recent track record, if not ahead — as Consumption-based names and Hyperscaler data points have been largely positive this cycle (barring the optimization headwinds cited by Confluent)," Cikos said. Baird, outperform, $200 target Analyst William Power is looking for an incremental increase to Snowflake's full-year outlook, including 24% product revenue growth. "Our industry conversations have suggested limited macro impact and a continued customer focus on cloud migrations and data modernization," Power said. "Investors will be focused on consumption trends broadly, along with progress with Cortex AI (we picked up positive feedback at events intra-quarter) and other newer products." JPMorgan, overweight, $210 target Analyst Mike Murphy's $210 per share price target calls for more than 15% upside. "Heading into Snowflake's FQ1 results, we believe some investor debate remains around the underlying health of cloud consumption activity, though based on recent trending across hyperscaler/consumption peers and other indications across our cloud ecosystem contacts, our sense is that fundamental trends likely remain fairly resilient, and we see some company-specific drivers for Snowflake," Murphy said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Wedbush Analysts Call Oklo a 'Clear Leader' in Future Nuclear Acceleration
Oklo is poised to be a "clear leader" of the coming boom in demand for clean energy like nuclear, Wedbush analysts wrote Thursday. The nuclear energy startup won a contract to build a small "powerhouse" reactor to supply power to an Air Force base on Wednesday. Oklo is "in a great position to capitalize" on rising demand for nuclear energy to power a growing number of data centers as well, the analysts Oklo (OKLO) won a Department of Defense contract on Wednesday to supply power to an Air Force base in Alaska, analysts from Wedbush said the nuclear energy startup is set to be a "clear leader" as demand for nuclear energy increases. The analysts lifted their price target to $75 from $55 previously, as they said the nuclear energy industry recently got a "significant tailwind" from President Donald Trump's executive orders signed last month. "The AI Revolution is driving significant demand for clean energy to power AI initiatives with necessary computing power expected to grow 10x by 2030," the analysts wrote. They said Oklo is "in a great position to capitalize on this elevated demand and differentiate itself from competition with its attractive build, own, and operate business model." Oklo and other nuclear stocks have been lifted over the last year as projections have grown for the power demand that an increasing number of data centers will require. The Wedbush analysts said that Wednesday's announcement provides another avenue for Oklo to generate revenue, as the Department of Defense could give the company future contracts for its smaller "powerhouse" reactors to power other military bases as it looks to quadruple nuclear energy production. After a nearly 30% rally to a record close of $68.03 on Wednesday, Oklo shares were little changed on Thursday. They have more than tripled since the start of the year. Read the original article on Investopedia
The Hill
14 minutes ago
- The Hill
Trump signs measure blocking California's ban on new sales of gas-powered cars
WASHINGTON (AP) — President Donald Trump signed a resolution on Thursday that blocks California's first-in-the-nation rule banning the sale of new gas-powered cars by 2035. California is expected to challenge the move in court. The resolution was approved by Congress last month and aims to quash the country's most aggressive attempt to phase out gas-powered cars. Trump also signed measures to overturn state policies curbing tailpipe emissions in certain vehicles and smog-forming nitrogen oxide pollution from trucks. Trump called California's regulations 'crazy' at a White House ceremony where he was expected to sign the resolutions. California's attorney general is expected to speak at a news conference Thursday morning. THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below. WASHINGTON (AP) — President Donald Trump will sign a resolution on Thursday that blocks California's first-in-the-nation rule banning the sale of new gas-powered cars by 2035. The resolution was approved by Congress last month and aims to quash the country's most aggressive attempt to phase out gas-powered cars. He also will approve measures to overturn state policies curbing tailpipe emissions in certain vehicles and smog-forming nitrogen oxide pollution from trucks. Trump called California's regulations 'crazy' at a White House ceremony where he was expected to sign the resolutions. 'It's been a disaster for this country,' he said. It comes as the Republican president is mired in a clash with California's Democratic governor, Gavin Newsom, over Trump's move to deploy troops to Los Angeles in response to immigration protests. It's the latest in an ongoing battle between the Trump administration and heavily Democratic California over issues including tariffs, the rights of LGBTQ+ youth and funding for electric vehicle chargers. California is expected to challenge Trump's latest move targeting its vehicle standards rules in court. 'If it's a day ending in Y, it's another day of Trump's war on California,' Newsom spokesperson Daniel Villaseñor said in an email. 'We're fighting back.' The three resolutions Trump will sign will block California's rule phasing out gas-powered cars and end the sale of new ones by 2035. They will also kill rules that phase out the sale of medium- and heavy-duty diesel vehicles and cut tailpipe emissions from trucks. Newsom, who is considered a likely 2028 Democratic presidential candidate, and California officials contend that what the federal government is doing is illegal and said the state plans to sue. The signings come as Trump has pledged to revive American auto manufacturing and boost oil and gas drilling. The move follows other moves the Trump administration has made to roll back rules that aim to protect air and water and reduce emissions that cause climate change. The Environmental Protection Agency on Wednesday proposed repealing rules that limit greenhouse gas emissions from power plants fueled by coal and natural gas. Dan Becker with the Center for Biological Diversity, said the signing of the resolutions was 'Trump's latest betrayal of democracy.' 'Signing this bill is a flagrant abuse of the law to reward Big Oil and Big Auto corporations at the expense of everyday people's health and their wallets,' Becker said in a statement. California, which has some of the nation's worst air pollution, has been able to seek waivers for decades from the EPA, allowing it to adopt stricter emissions standards than the federal government. In his first term, Trump revoked California's ability to enforce its standards, but Democratic President Joe Biden reinstated it in 2022. Trump has not yet sought to revoke it again. Republicans have long criticized those waivers and earlier this year opted to use the Congressional Review Act, a law aimed at improving congressional oversight of actions by federal agencies, to try to block the rules. That's despite a finding from the U.S. Government Accountability Office, a nonpartisan congressional watchdog, that California's standards cannot legally be blocked using the Congressional Review Act. The Senate parliamentarian agreed with that finding. California, which makes up roughly 11% of the U.S. car market, has significant power to sway trends in the auto industry. About a dozen states signed on to adopt California's rule phasing out the sale of new gas-powered cars. The National Automobile Dealers Association supported the federal government's move to block California's ban on gas-powered cars, saying Congress should decide on such a national issue, not the state. The American Trucking Associations said the rules were not feasible and celebrated Congress' move to block them. ___ Austin reported from Sacramento, Calif.
Yahoo
16 minutes ago
- Yahoo
Stocks mixed amid GDP miss and fresh trade worry
The FTSE 100 closed higher on Thursday, despite weak UK growth figures and renewed geopolitical tensions and tariff worries. The FTSE 100 index closed up 20.57 points, 0.2%, at 8,884.92. The FTSE 250 ended down 41.85 points, 0.2%, at 21,386.69, and the AIM All-Share closed 2.95 points lower, 0.4%, at 765.88. The UK economy fell at a faster pace than expected in April, numbers on Thursday showed, as services output slumped. According to the Office for National Statistics, the UK economy fell 0.3% in April from March. It had expanded 0.2% in March from February. The reading for April fell short of expectations, as a smaller decline of 0.1% was expected, according to consensus cited by FXStreet. Bank of America (BofA) explained that services and manufacturing fell due to stamp duty changes, national insurance contribution increases and US tariffs. 'This is the first hard data we get with the tariff impact,' BofA noted after the figures, which it said puts 'small downside risks to our Q2 GDP forecast of 0.2%'. 'While the hit to services from stamp duty changes should reverse, we think growth is likely to continue to be weighed down by US tariffs/NICs rise. The US/UK trade deal and US de-escalation with China cap severe downside risks to UK growth from tariffs, but growth is likely to be lower relative to pre-Liberation Day,' BofA said. But the broker expects quarterly growth to be positive as consumer spending pick-up and October fiscal stimulus should act as tailwinds. 'Weaker growth, potential reversal of the erratic April inflation strength in May, slowing pay, looser labour market and potential disinflationary impact from tariffs can open the door for a doveish tilt from the BoE (Bank of England) in the second half of the year,' BofA added. 'We continue to expect cuts in August, September and November.' Weighing on sentiment was another twist in the unpredictable US approach to trade. US President Donald Trump on Wednesday said he would be sending letters within the next two weeks to other countries' governments to announce unilateral US levies on their exports to America. 'This is the deal, you can take it or leave it,' Mr Trump told reporters. The return to trade belligerence eclipsed any optimism that had emerged from a putative agreement between the US and China on Tuesday to modestly de-escalate trade tensions. Paul Donovan, at UBS, said while investors have become 'conditioned to expect retreats from such threats', the uncertainty created 'may weigh on US investment and hiring in the near term.' The comments, which followed a soft US CPI print on Wednesday, put the greenback under renewed pressure. The pound was quoted higher at 1.3586 US dollars at the time of the London equities close on Thursday, compared with 1.3545 dollars on Wednesday. The euro stood higher at 1.1575 dollars against 1.1486 dollars. Against the yen, the dollar was trading at 143.71, down compared with 144.63. In European equities on Thursday, the CAC 40 in Paris closed down 0.1%, slightly higher, while the DAX 40 in Frankfurt ended down 0.7%. Stocks in New York were little changed. The Dow Jones Industrial Average was flat, the S&P 500 index was up 0.2%, and the Nasdaq Composite was 0.1% higher. Data on Thursday showed US annual producer price inflation accelerated as expected last month, though prices rose at a slower pace than expected on a monthly basis. According to the Bureau of Labor Statistics, US annual producer price inflation heated up to 2.6% in May, from 2.5% in April, in line with the FXStreet cited consensus. Prices rose 0.1% in May from April, but were expected to increase by 0.2%. Prices had fallen 0.2% in April from March. The yield on the US 10-year Treasury was quoted at 4.38%, narrowing from 4.44%. The yield on the US 30-year Treasury was quoted at 4.87%, narrowing from 4.93%. On Wall Street, Boeing fell 4.9% after Air India flight 171, a Boeing 787-8 Dreamliner, crashed in the city of Ahmedabad shortly after take-off. The crash was the first ever for a Boeing 787 Dreamliner, a source familiar with the matter confirmed to AFP. The crash saw airline share prices fall. British Airways owner IAG fell 3.2%, easyJet fell 3.8%, Deutsche Lufthansa fell 2.7% and Air France-KLM fell 7.3%. Putting further pressure on airlines, a jump in oil prices raises the likelihood of higher fuel costs. Brent oil was quoted higher at 69.66 US dollars a barrel at the time of the London equities close on Thursday, from 68.23 dollars late on Wednesday. The oil price firmed following reports that Israel was poised to launch air strikes on Iran, along with Mr Trump saying he was now 'less confident' that talks with Tehran would end up with it rolling back its nuclear programme. The US is removing non-essential personnel and military dependants from the Middle East, after Iran warned it would target US military bases in the region if conflict broke out. Iran, meanwhile, is doubling down, vowing to 'significantly' boost uranium enrichment after the UN's nuclear watchdog said Tehran has breached its obligations. The rise saw oil majors and index heavyweights BP and Shell climb 1.9% and 1.3% respectively. Gold was quoted higher at 3,388.71 dollars an ounce against 3,338.63 dollars. On the FTSE 100, Tesco rose 1.6% after a well-received first-quarter trading update. The Welwyn Garden City-based food retailer said sales in the 13 weeks to May 24 amounted to £16.38 billion, rising 5.3% on-year, or 5.5% at constant currency, and ahead of the Visible Alpha consensus of £16.1 billion. Like-for-like sales were 4.6% higher annually, beating the Visible Alpha consensus of 3.9%, and accelerating from 4.0% growth in the fourth quarter of the prior financial year. 'We are pleased with our performance across the first quarter. Our continued commitment to delivering great value, quality and service for our customers has contributed to like-for-like sales growth across all parts of the group,' chief executive Ken Murphy said. John Moore, wealth manager at RBC Brewin Dolphin, said: 'It's been a strong start to the year for Tesco, helped by the good weather, with sales growth across each part of the group.' Halma advanced 3.3% after better-than-expected annual results. The life-saving equipment maker, based in Amersham, Buckinghamshire, posted pre-tax profit of £384.3 million for the financial year ended March 31, up 13% from £340.3 million a year prior. Revenue rose 11% to £2.25 billion from £2.03 billion. Adjusted earnings before interest and tax rose 15% to £486.3 million from £424.0 million a year ago. The adjusted Ebit margin improved to 21.6% from 20.8%. Citi said sales were around 1% above consensus, adjusted Ebit was 2% above expectations, and adjusted Ebit margin was 20 basis points above forecast. AJ Bell investment director Russ Mould said the 'impressive' results confirmed Halma's status as 'one of the unsung heroes of the London market'. The biggest risers on the FTSE 100 were Endeavour Mining, up 96p at 2,332p, Halma, up 100p at 3,120p, Hikma Pharmaceuticals, up 56p at 2,146p, BT Group, up 4.6p at 185.4p, and BP, up 7.1p, at 380.7p. The biggest fallers on the FTSE 100 were easyJet, down 22.2p at 558.8p, JD Sports Fashion, down 3p at 77.3p, Intermediate Capital Group, down 71p at 1,971p, Mondi, down 42.5p at 1,184p, and IAG, down 10.7p at 328.5p. There are no significant corporate events currently scheduled for Friday. Friday's global economic calendar has CPI figures from France, Germany and Spain, the Michigan consumer sentiment index and eurozone industrial production figures. Contributed by Alliance News
