Shares of C3.ai Inc (NYSE:AI) were trading slightly higher on Thursday, even after the company reported upbeat fiscal fourth-quarter results on Wednesday.
Here are some key analyst takeaways:
- Wedbush analyst Dan Ives reiterated an Outperform rating and price target of $15.
- DA Davidson analyst Lucky Schreiner maintained an Underperform rating and price target of $7.
Check out other analyst stock ratings.
Wedbush: C3.ai reported its fourth-quarter top-line and bottom-line ahead of expectations, Ives said in a note. The company's restructuring is now "largely behind it and the cost base set up to deliver operating leverage from here," he wrote.
The analyst noted the highlights of the results:
- Revenue of $51.6 million, above consensus of $50.4 million
- The company signing 28 agreements during the quarter including 9 new Initial Production Deployments (IPDs)
- Non-GAAP operating loss of $54.4 million, better than Street expectations of a loss of $58.8 million
C3.ai seems to be on track to "meet or exceed its original cost savings target of ~$135.0 million," he further wrote.
DA Davidson: C3.ai reported revenue of $51.6 million, just shy of the high end of its guidance range, representing a decline of 53% year-on-year, less steep than the previous quarter's 46% contraction, Schreiner said in a note. Subscription revenue declined 10% year-on-year to $48.4 million, versus the previous quarter's 16% decline, he added.
Founder Tom Siebel has returned as the company's CEO and purchased around $70 million worth of shares to "convey confidence in the opportunity ahead," the analyst wrote. He further stated that the company's fiscal 2027 revenue outlook:
- Came at $210-$240 million
- Bracketed consensus estimates at $225 million
- Implies a contraction of 10%, an improvement over the 36% decline in fiscal 2026
The outlook for the first quarter of fiscal 2027:
- Revenue of $52 million at the midpoint topped consensus expectations by around $1 million
- Implies a decline of 26% year-on-year
AI Price Action: C3.ai shares were up 0.89% at $10.80 at the time of publication on Thursday, according to Benzinga Pro data.
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