Why Samsara Stock Rocketed 14% Higher Today
Now this is the way to end a trading week. Internet of Things (IoT) and cloud computing company Samsara (NYSE: IOT) saw its share price balloon by 14% on Friday, following the release of its latest set of quarterly and full-year results. The stock's performance was miles better than that of the S&P 500 index, which slumped on the day by nearly 0.7%.
Double beats in Samsara's fourth quarter
Samsara took in more than $276 million in revenue during its fourth quarter of fiscal 2024, which was a very robust 48% higher year over year. The bottom-line improvement was even more impressive, as under non-GAAP (adjusted) standards the IoT specialist flipped to a profit of over $23 million ($0.04 per share) against the year-ago loss of almost $8.3 million.
On average, analysts tracking Samsara stock were anticipating the company would book a bit more than $258 million for revenue and post adjusted net income of $0.03 per share.
Other operational metrics developed positively. Management didn't hesitate to point out that fiscal 2024 marked the first year the company recorded positive adjusted free cash flow. It also managed to grow its annual recurring revenue (ARR) by 39% to over $1.1 billion during the period.
Guidance full of growth
Samsara has every confidence that its growth engine will keep humming. It proffered guidance for the entirety of fiscal 2025, forecasting that revenue should grow by at least 27% to hit $1.186 billion to $1.196 billion. Adjusted per-share earnings should come in at $0.11 to $0.13, well up from the $0.07 of fiscal 2024.
Both ranges are comfortably above the consensus analyst estimates of $1.180 billion on the top line and $0.08 for adjusted, per-share net income.
Should you invest $1,000 in Samsara right now?
Before you buy stock in Samsara, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Samsara wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 8, 2024
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Samsara. The Motley Fool has a disclosure policy.
