Is AMPL's Q1 2025 EPS forecast achievable?
4/9/2025 11:47am
**Amplitude's Q1 2025 EPS forecast is challenging to achieve based on recent performance and market trends.** Here's why:
1. **Recent Performance**: Amplitude's latest report period is for Q4 2024, and the company reported an EPS of $0.02, which beat forecasts by $0.01. This indicates that the company has been performing well, but the margin of beat was relatively small.
2. **Market Expectations**: Analysts are expecting an EPS of -$0.2 for Q1 2025, which is a significant drop from the positive EPS of $0.02 reported in the most recent quarter. This suggests that the market is cautious about Amplitude's short-term prospects.
3. **Company Outlook**: Although Amplitude has a strong financial position with more cash than debt, nine analysts have recently revised their earnings expectations downward for the upcoming period. This could indicate that the company's performance is expected to decline in the near term.
4. **Historical Performance**: Amplitude has a history of beating analyst expectations, but it has only missed revenue estimates once over the last two years. This suggests that while the company has the potential to exceed expectations, it may struggle to meet the low forecasted EPS.
5. **Industry Trends**: The data and analytics software segment has seen some variation in performance among peers. While Palantir reported strong year-on-year revenue growth, Amplitude's growth rate has been more modest. This could be a reflection of broader market trends or specific company factors.
In conclusion, while Amplitude has a history of beating expectations, the significant drop in expected EPS and the downward revision by analysts make it challenging to believe that the Q1 2025 EPS forecast of -$0.2 will be achieved. The company's strong financial position and historical track record of beating expectations provide some optimism, but the current market trends and analyst sentiment suggest caution.