Semiconductor maker SMART Global Holdings (NASDAQ:SGH) will be reporting earnings tomorrow after market hours. Here's what to expect.
Last quarter SMART reported revenues of $465.5 million, down 0.95% year on year, beating analyst revenue expectations by 4.4%. It was a weak quarter for the company, with slow revenue growth and an increase in inventory levels.
Is SMART buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting SMART's revenue to decline 3.15% year on year to $435 million, a further deceleration on the 47.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.60 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.57%.
Looking at SMART's peers in the semiconductors segment, some of them have already reported earnings results, giving us a hint of what we can expect. Micron Technology reported revenue decline of 52.6% year on year, missing analyst estimates by 0.37%. Micron Technology traded flat on the results. Read our full analysis of Micron Technology's results here.
There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 3.75% over the last month. SMART is up 4.74% during the same time, and is heading into the earnings with analyst price target of $24.50, compared to share price of $17.25.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.