Samsara (NYSE:IOT), the connected operations cloud company, soared in pre-market trading after it reported strong fiscal Q3 results. The company swung to a profit with earnings of $0.04 per share compared to a loss of $0.02 per share in the same period last year. For reference, analysts were expecting earnings of $0.02 per share.
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Samsara’s revenues surged by 40% year-over-year to $237.5 million, with annual recurring revenues (ARR) hitting $1 billion, increasing 39% year-over-year. However, this fell short of consensus estimates of $250.4 million.
Looking forward, management expects Q4 revenues to be in the range of $257 million to $259 million, with adjusted earnings between $0.02 and $0.03 per share. In FY24, the company anticipates revenues to be between $918 million and $920 million. At the same time, adjusted earnings are likely to be in the range of $0.05 to $0.06 per share.
Is Samsara Stock a Good Buy?
Analysts remain cautiously optimistic about IOT stock with a Moderate Buy consensus rating based on five Buys and two Holds. Year-to-date, IOT stock has surged by more than 100%, and the average IOT price target of $31.17 implies an upside potential of 13.2% at current levels.
