Internet of Things company Samsara (NYSE:IOT) will be reporting earnings tomorrow after market close. Here’s what to look for.
Samsara beat analysts’ revenue expectations by 3.1% last quarter, reporting revenues of $280.7 million, up 37.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ billings estimates and a decent beat of analysts’ ARR (annual recurring revenue) estimates.
Is Samsara a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Samsara’s revenue to grow 32.1% year on year to $289.5 million, slowing from the 42.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Samsara has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 6.6% on average.
Looking at Samsara’s peers in the data analytics segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Palantir delivered year-on-year revenue growth of 27.2%, beating analysts’ expectations by 3.9%, and Amplitude reported revenues up 8.2%, topping estimates by 1.8%. Palantir traded up 10.3% following the results while Amplitude’s stock price was unchanged.
Read our full analysis of Palantir’s results here and Amplitude’s results here.
There has been positive sentiment among investors in the data analytics segment, with share prices up 6.4% on average over the last month. Samsara is up 8% during the same time and is heading into earnings with an average analyst price target of $41.4 (compared to the current share price of $39.75).
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