Samsara Stock Falls After Earnings. The Guidance for the Software Firm Is the Problem

Dow Jones06-05 08:23

Shares of Samsara declined late Thursday after the software company announced that it expects fiscal second-quarter financials will broadly be in line with Wall Street's expectations, overshadowing better-than-expected fiscal 2027 first-quarter financials.

Samsara stock fell 3.3% in the after hours after ending regular trading on Thursday down 3% to $35.26. The stock has closed lower in three consecutive trading sessions and is up less than 1% this year.

The company, which makes technology that connects physical operations like construction and freight, posted adjusted earnings of 17 cents a share for the quarter ended May 2, compared with 11 cents a share a year ago and above Wall Street's 13-cents-a-share expectation. Revenue grew 31% to $478.8 million, handily beating the analyst call for $455.2 million.

The company's annual recurring revenue grew 30% to $1.99 billion in the quarter, slightly beating analyst expectations of $1.97 billion.

Looking ahead, the company expects earnings of 15 cents a share to 16 cents a share on revenue between $482 million and $484 million in the fiscal second quarter. That guidance mostly matches analysts' second-quarter forecast of 15 cents a share with sales totaling $480 million, according to FactSet.

Samsara also raised its full-fiscal year outlook, predicting profit of 70 cents a share to 72 cents a share with revenue totaling between $2.005 billion and $2.013 billion. That's up from the company's previous guidance of 65 cents a share to 69 cents a share on sales of $1.965 billion to $1.975 billion. Analysts expect fiscal 2027 profit of 68 cents a share with sales totaling $1.97 billion.

Samara is less vulnerable to artificial intelligence than more traditional enterprise-software companies, which often operate on seat-based models that can be replaced over time by AI tools.

"Our customers are facing unprecedented demand and are constrained by worker capacity," CEO Sanjit Biswas said in the earnings release.

"We see a massive opportunity to transform physical industries with Operational AI and AI Agents -- automating work, unlocking capacity, and driving greater productivity across the sectors that power the global economy," Biswas added.

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Comments

  • tanks77
    06-05 08:59
    tanks77
    Everything they say ER bad they can say other thing so that stock price up , ER good they can say anything also to bring the stock down , to be frank it all about the option that retail buy after the report ...
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