Samsara Reports Q3 Revenue of $321.98M and EPS of $0.07, Stock Drops 10% on Disappointing Guidance

Samsara Inc. (ticker: $IOT) reported its third-quarter earnings, revealing a revenue of $321.98 million, which represents a year-over-year increase of 35.57% and exceeded analyst expectations by $11.42 million. The company's earnings per share (EPS) also beat forecasts, coming in at $0.07, up 75% year-over-year, surpassing estimates by $0.03. Despite these positive results, Samsara's stock fell by approximately 10% following the announcement, primarily due to disappointing revenue guidance for the fourth quarter. Analysts had set high expectations, especially after a 40% increase in the stock price over the past three months, leading to a valuation of around 20 times next twelve months (NTM) sales. Piper Sandler raised its price target for Samsara shares to $50 from $40, maintaining a neutral rating on the stock. CEO Sanjit Biswas discussed the impact of artificial intelligence on the company, which specializes in providing sensors, cameras, and software for managing vehicle fleets and equipment.