C3.ai, Inc. (AI) shares were down 5.9% in pre-market trading on Monday, following recent analyst concerns about the company's potential earnings and growth outlook. The stock has faced significant selling pressure, declining 14.8% over the past month, compared to a 2.7% gain in the S&P 500 composite.
The sell-side analyst community has become increasingly cautious about C3.ai's near-term performance prospects. The Zacks Consensus Estimate for the current fiscal year earnings has remained unchanged at a loss of $0.63 per share, indicating a 34% decline from the prior year. Furthermore, the consensus estimate for the next fiscal year points to a more modest 13.2% improvement, with projected earnings of -$0.54 per share.
While C3.ai's revenue growth estimates remain relatively strong, with projected year-over-year increases of 25% for the current quarter and 29.6% for the current fiscal year, concerns about the company's profitability and valuation appear to be weighing on investor sentiment. C3.ai currently carries a Zacks Rank of #4 (Sell), suggesting potential underperformance relative to the broader market in the near term.