C3.ai To Report Q2 Results Monday After The Close: Analysts Wary About Recent Rally, Retail On ‘Wait-and-watch’ Mode

Enterprise artificial intelligence software applications company c3.ai, Inc. ($AI) is scheduled to announce its fiscal year 2025 second-quarter results after the market closes on Monday.

The Redwood City, California-based company is widely expected to report a loss of $0.16 per share for the quarter, wider than the year-ago loss of $0.13.

On average, analysts estimate revenue of $91.02 million, compared to the $73.23 million reported a year ago.

c3.ai’s guidance issued in early September called for revenue of $88.6 million to $93.6 million and a non-GAAP loss of $26.7 million to $34.7 million.

The company reported bottom-line beats in each of the past four quarters, and revenue outperformance in three of the four quarters.

During the second quarter, c3.ai was issued a new U.S. patent for a sophisticated system and method for managing multiple AI agents to orchestrate actions using multimodal foundation models. 

The company announced a strategic alliance with Microsoft Corp. ($MSFT) to accelerate the adoption of Enterprise AI on Microsoft Azure. The two companies have a partnership dating back to 2018 for delivering enterprise AI solutions at scale to companies such as Dow, Shell, Nucor, etc.

c3.ai also announced an expanded partnership with French IT services and consulting company Capgemini. 

For the full year, the company currently estimates revenue of $370 million to $395 million, surrounding the consensus estimate of $382.6 million, and a non-GAAP loss of $95 million-$125 million.

Sentiment toward c3.ai stock was ‘neutral’ (46/100) on Stocktwits, and message volume was at ‘normal’ levels. 

AI sentiment and message volume December 9, 2024, as of 2:19 am ET | Source: Stocktwits

c3.ai stock ended Friday’s session up 8.08% at $40.52. It has gained over 41% this year. 

Last week, DA Davidson analysts upped the price target for the stock from $20 to $35, attributing the action to the stock’s 50% rally in the past month, primarily due to the Microsoft strategic alliance. 

They said that potential benefits from the alliance will come to fruition over the long run.

The analysts, however, maintained a ‘Neutral’ rating, stating that the run-up creates a “tricky setup” for the stock in the near term. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<