Software provider UiPath (PATH) is set to release its Q3 FY25 results on December 5. Shares have declined nearly 42% year-to-date, reflecting challenges in the broader automation sector. Also, the recent leadership changes have added to the investors’ concerns. Analysts expect UiPath to report earnings per share (EPS) of $0.07 for Q3 FY25, reflecting a 41.7% year-over-year decline.
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Nevertheless, Wall Street expects Q3 revenue to rise by 6.7% year-over-year, reaching $347.6 million for the quarter. The revenue increase is driven by UiPath’s focus on AI-powered automation, which has gained traction in industries looking to increase operational efficiency.
Analysts’ Sentiment Ahead of Q3
Heading into the Q3 print, analysts forecast a decline in earnings, despite an expected rise in revenues, adding to the mixed outlook on the company’s performance.
According to TipRanks’ Bulls Say, Bears Say tool pictured below, bullish analysts highlight several reasons to be optimistic about UiPath. They believe that the stock is attractively valued at the current levels. Also, they contend that UiPath’s product innovation, including new GenAI features announced at its annual conference, strengthens its automation platform.
On the other hand, bearish analysts have concerns that can’t be overlooked. They remain worried about the company’s declining recurring revenue. Moreover, the sudden CEO departure, along with a guidance cut and workforce reductions, has raised doubts about the company’s future prospects.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 13.84% move in either direction.
Is PATH a Good Stock to Buy?
Turning to Wall Street, analysts have a Hold consensus rating on PATH stock based on two Buys and fifteen Hold ratings assigned in the past three months, as indicated by the graphic below. The average PATH price target of $15.75 per share implies 9.53% upside potential.
