UiPath’s (NYSE:PATH) stock is up nearly 11% today after the software and robotics company reported better-than-expected earnings.
While still unprofitable, New York City-based UiPath reported a quarterly loss of 3 cents per share. That was better than the 5 cents a share loss expected on Wall Street. The fact that UiPath’s earnings per share were 40% better than what analysts had forecast has PATH stock jumping higher today.
UiPath has now beaten Wall Street estimates for its earnings per share in four consecutive quarters. The company also reported revenues of $245.07 million for the quarter ended April 30, which was 32% higher than the $186.22 million in revenue it earned a year ago, and better than analysts’ consensus estimates. UiPath has also topped revenue estimates in four consecutive quarters.
Looking forward, UiPath said it expects revenues of $229 million to $231 million in the current quarter, which is better than the $227.14 million forecast on the Street. For all of this year, UiPath sees revenue in the range of $1.085 billion to $1.09 billion versus consensus expectations of $1.07 billion.
Why It Matters
Today’s move higher comes after a steep selloff in PATH stock this year. Before today, the company’s share price had declined 62% since January to trade at $16.83 a share. That’s much worse than the benchmark S&P 500 index’s year-to-date decline of 13%.
The decline reflects the investors pivot away from fast growing technology stocks and into more defensive positions as concerns about a potential economic recession grow. Additionally, PATH stock has been hurt by the fact that UiPath continues to report quarterly losses and is not yet profitable on a consistent basis, despite beating consensus expectations with its earnings.
What’s Next for PATH Stock
PATH shareholders get a break today as UiPath’s stock moves sharply higher following its latest earnings print. Will it last? Time will tell. But given the current volatility in the market, investors should expect that UiPath’s stock will continue to move erratically in the near-term.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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