UiPath Inc. PATH will report its fourth-quarter fiscal 2025 results on March 12, after the bell.
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The Zacks Consensus Estimate for earnings in the to-be-reported quarter stands at 19 cents, indicating a 13.6% decline from the year-ago reported quarter. The consensus estimate for revenues stands at $424.8 million, implying 4.8% year-over-year growth. There has been no change in analyst estimates or revisions lately.
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The company has an impressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an earnings surprise of 38.8%, on average.
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Lesser Chance of Q4 Earnings Beat for PATH
Our proven model doesn’t conclusively predict an earnings beat for PATH this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
PATH has an Earnings ESP of 0.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subscription Should be PATH’s Key Driver in Q4
The Zacks Consensus Estimate for subscription services revenues is pegged at $209 million, indicating 18.8% year-over-year growth. The consensus estimate for professional services and other revenues is pegged at $10 million, implying 11% year-over-year growth. The consensus mark for license revenues is pegged at $137.3 million, implying a 6.4% year-over-year decline.
PATH Stock Has Been Consolidating
The stock has been consolidating for more than nine months, showing hardly any movement compared to the industry's 47% growth and the Zacks S&P 500 Composite’s 10.4% rise. PATH’s performance outperforms Varonis Systems VRNS, which has declined 7.8%, but underperforms Trend Micro Incorporated TMICY, which has rallied 48% in the same time frame.
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Pre-Earnings Investment Considerations for PATH
PATH approaches its earnings release amid a consolidating stock performance and trailing industry growth. While its subscription segment remains a key strength, the company faces near-term challenges, including earnings pressure and uncertain market sentiment.
Despite its strong track record of surpassing expectations, the absence of favorable indicators for an earnings beat suggests limited short-term catalysts. Investors may find it prudent to adopt a wait-and-see approach, as PATH’s long-term potential remains intact but lacks immediate momentum.
With the broader market uncertainty and PATH’s stock yet to break out of consolidation, holding steady could be a cautious yet strategic move. A clearer direction post-earnings may offer a better entry or exit point.
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Free: See Our Top Stock And 4 Runners UpUiPath, Inc. (PATH) : Free Stock Analysis Report
Trend Micro Inc. (TMICY) : Free Stock Analysis Report
Varonis Systems, Inc. (VRNS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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