On Monday, Sprinklr Inc. (NYSE:CXM) shares gained more than 3%, extending Friday’s post-earnings gain. The stock spiked more than 11% at the end of last week, following its solid FQ3 beat. Sprinklr announced its most recent quarterly results Thursday after the close, outperforming the consensus for analyst expectations on revenue and earnings.
The company posted FQ3 non-GAAP earnings per share of -$0.06, exceeding the consensus for analyst expectations of -$0.10. On the other hand, its GAAP EPS of -$011, also outperformed the average Street forecast of -$0.14, while revenue for the quarter increased by 32% from the same quarter in 2020 to $127.1 million, surpassing the average analyst expectation by $9 million.
Sprinklr also issued FQ4 non-GAAP EPS in the range of -$0.08 to -$0.09, compared to a Street forecast of -$0.10. In addition, its full-year non-GAAP earnings per share forecast of -$0.30 to -$0.31 is also below the average analyst estimate of -$0.36.
Is Sprinklr stock a safe bet?
From an investment perspective, Sprinklr shares trade at a reasonable price-sales ratio of 9.14, making the stock an attractive option for value investors.
In addition, analysts expect its earnings per share to improve by more than 40% next year, thus gaining the attention of growth investors.
Although the stock is up more than 25% since last week, it is still down 11.59% this year, thereby leaving room for more upward movement.
Technically, the stock seems to have recently spiked, completing an upward breakout from a sharply descending channel formation. As a result, the stock has recovered from oversold conditions, creating an opportunity to buy the rebound.
Therefore, investors could target extended gains at about $16.62, or higher at $18.17, while $14.34 and $12.78 are crucial support zones.
The post Sprinklr stock prediction for December 2021 after solid FQ3 beat appeared first on Invezz.