Yahoo Finance Sounhound AI (SOUN) to Post Q4 Earnings: What's in the Offing?
SoundHound AI SOUN is slated to release fourth-quarter 2023 results on Feb 29.
The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $16-20 million.
The consensus mark for loss has dropped by a penny to 5 cents per share in the past 30 days, suggesting a 66.67% improvement from the figure reported in the year-ago quarter.
The company beat the Zacks Consensus Estimate in the last four quarters, delivering an earnings surprise of 7.11% on average.
SoundHound AI, Inc. Price and EPS Surprise
SoundHound AI, Inc. price-eps-surprise | SoundHound AI, Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors to Consider
SoundHound is likely to have benefited from the growing demand for its conversational AI platform, owing to the increasing popularity of generative AI and large language models. The recent launch of the Polaris initiative underscores the company's commitment to leading in the field of conversational AI.
The company's focus on innovation is evident in the introduction of new products like SoundHound Vehicle Intelligence and Smart Answering for customer service, showcasing a dedication to meet evolving market demands and contributing to revenue growth in the to-be-reported quarter.
SoundHound's generative AI-enhanced voice products, including SoundHound Chat AI, have been well-received in the automotive and restaurant sectors. The incorporation of generative AI in their voice products is expected to have contributed well to the company’s performance in the to-be-reported quarter.
SoundHound's Pillar 1 strategy, emphasizing partnerships and growth in sectors such as automotive on the back of collaborations with Hyundai and Stellantis, is expected to have been a significant contributor to revenue growth in the quarter under review.
Increasing partnerships with notable brands like White Castle, Jersey Mike's and Krispy Kreme, on the back of its Pillar 2 strategy, focusing on AI customer service solutions, is likely to have been a tailwind.
Significant deals in the mid-market and regional restaurant space, with partners like Olo and ChowNow is anticipated to have contributed to top-line growth in the to-be-reported quarter.
However, macroeconomic uncertainties are expected to have hurt SOUN’s results in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, 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.
SoundHound has an Earnings ESP of -12.50% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
The Gap GPS has an Earnings ESP of +24.44% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Gap’s shares have declined 7.4% year to date. GPS is set to report its fourth-quarter 2023 results on Mar 7.
SEMrush SEMR has an Earnings ESP of +23.08% and a Zacks Rank of 2 at present.
SEMrush’s shares have declined 7.6% year to date. SEMR is set to report its fourth-quarter 2023 results on Mar 4.
SentinelOne S has an Earnings ESP of +16.3% and a Zacks Rank #3.
SentinelOne’s shares have returned 2.1% year to date. S is set to report its fourth-quarter fiscal 2024 results on Mar 13.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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SentinelOne, Inc. (S) : Free Stock Analysis Report
The Gap, Inc. (GPS) : Free Stock Analysis Report
SEMrush Holdings, Inc. (SEMR) : Free Stock Analysis Report
SoundHound AI, Inc. (SOUN) : Free Stock Analysis Report
