What To Expect From SMART’s (SGH) Q1 Earnings

Adam Hejl /
2024/01/08 2:00 am EST

Semiconductor maker SMART Global Holdings (NASDAQ:SGH) will be reporting results tomorrow after market close. Here's what you need to know.

Last quarter SMART reported revenues of $316.7 million, down 27.7% year on year, missing analyst expectations by 15.6%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

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 40.9% year on year to $275 million, a further deceleration on the 1% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.16 per share.

SMART Total Revenue

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 missed Wall St's revenue estimates three times over the last two years.

Looking at SMART's peers in the semiconductors segment, only Micron Technology has so far reported results, delivering top-line growth of 15.7% year on year, and beating analyst estimates by 2%. The stock traded up 3.8% on the results.

Read our full analysis of Micron Technology's earnings results here.

Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.2% over the last month. SMART is up 1.1% during the same time, and is heading into the earnings with analyst price target of $26.2, compared to share price of $17.79.

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.

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The author has no position in any of the stocks mentioned.