As the midweek trading session unfolds, SoundHound AI Inc (SOUN) witnessed a slight downturn, with its shares standing at $5.61, reflecting a -0.20 decrease, marking a 3.44% decline. This movement occurred in the context of broader market fluctuations, as major indices experienced varying degrees of volatility on Tuesday.
SoundHound AI Shares Market Performance Comparison
In comparison to the previous day’s closing, SoundHound AI Inc’s shares performance fell short, with a decrease of -0.85%. This contrasted with the S&P 500, which recorded a loss of 0.28%, while the Dow Jones Industrial Average experienced a slight dip of 0.08%, and the tech-heavy Nasdaq Composite saw a decrease of 0.42%.
Month-over-Month Analysis of SoundHound AI Shares
Despite Tuesday’s decline, SoundHound AI Inc’s shares have shown resilience over the past month, climbing by 1.91%. However, this growth trajectory lags behind the Computer and Technology sector’s gain of 3.64% and the S&P 500’s increase of 2.67%.
Anticipation Surrounding Earnings Release
Investor attention is now focused on the upcoming earnings release of SoundHound AI Inc, poised to provide insights into the company’s financial performance. Analysts predict an EPS of -$0.09, signaling a 25% growth compared to the same quarter last year. Revenue projections for the quarter stand at $10.12 million, reflecting a robust increase of 50.86% year-over-year.
Fiscal Year Outlook
Looking ahead to the entire fiscal year, Zacks Consensus Estimates indicate earnings of -$0.29 per share and revenue of $69.75 million for SoundHound AI Inc. These figures represent changes of +23.68% and +52.04%, respectively, from the previous year, underscoring the company’s anticipated growth trajectory.
Analyst Estimate Revisions and Zacks Rank
Investors are advised to monitor any recent adjustments to analyst estimates for SoundHound AI Inc, as these revisions can offer valuable insights into near-term business trends. Positive revisions typically indicate analysts’ optimistic outlook on the company’s future prospects, with potential implications for stock price performance.
The Zacks Rank system, leveraging these estimate changes, assigns a rating ranging from #1 (Strong Buy) to #5 (Strong Sell). Historically, #1 ranked stocks have delivered an average annual return of +25% since 1988, highlighting the predictive power of this model. Currently, SoundHound AI Inc holds a Zacks Rank of #3 (Hold).
Industry Outlook and Zacks Industry Rank
SoundHound AI Inc operates within the Computers – IT Services industry, a subset of the Computer and Technology sector. Presently, this industry holds a Zacks Industry Rank of 68, placing it in the top 27% of over 250 industries, indicating a favorable industry outlook amidst broader market conditions.
As SoundHound AI Inc navigates through market volatility, investors remain attuned to earnings updates and analyst projections, seeking to gauge the company’s performance against industry benchmarks. With anticipation surrounding its upcoming earnings release, SoundHound AI Inc continues to be a focal point for market observers, poised to demonstrate its resilience and growth potential amidst evolving market dynamics.
Source: Zacks Equity Research
