Snowflake share price: what to expect from Q4 earnings

What can we expect from Snowflake’s (SNOW) Q4 earnings on Wednesday 3 March.

When is Snowflake’s earnings date?

The cloud software company Snowflake is scheduled to report fiscal fourth quarter (Q4) earnings on Wednesday 3 March after the market close.

Snowflake earnings: what to expect from its Q4 results

The business, which is listed on the New York Stock Exchange (NYSE) under the ticker SNOW, is forecast to publish a loss of 36c a share, according to consensus forecasts from Zacks.

SNOW has been one of the companies that has helped other businesses change the way they store their data. Snowflake’s software means that clients no longer need to store data in separate silos, instead the data can now be stored in one place, giving rise to cost savings. Analytics company Slintel says that Snowflake now controls almost half of the data storage market, no mean feat when considering SNOW’s main competitors are behemoths with deep pockets such as Microsoft, Amazon and SAP.

What traders want to hear from Snowflake, when it produces the numbers, is how and when it will begin to benefit from the money that has been spent on research and development (R&D). The third quarter (Q3) release showed that this part of the cost base had more than tripled, year on year, to $74.1 million. R&D headcount has risen from under 300 to 440 people in a year and management need to clarify the benefits behind this investment strategy. So this could be one area to watch when the company makes is statement.

Snowflake share price: technical analysis

The stock listed on 16 September 2020 at $120 each, above the target initial public offering (IPO) price of between $100 to $110 per share and immediately it rose closing out its first day as a listed company at $254, taking the company’s valuation of $33 billion to $88 billion. The stock price has since gained further weight to top out at $428.76 on 8 December 2020. However, subsequent to this shares have moved lower, breaking $260 support.*

In terms of the next move, traders will be waiting until after the earnings release, but the moving average convergence divergence oscillator (MACD), which indicates momentum in price action, is pointing down. Technical analysts believe that momentum precedes price action so this may be taken as an indicator of possible further weakness for the company’s stock.

* Wednesday 24 February 2021

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