What To Expect From SMART’s (SGH) Q4 Earnings

Anthony Lee /
2023/10/11 3:00 am EDT

Semiconductor maker SMART Global Holdings (NASDAQ:SGH) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter SMART reported revenues of $383.3 million, down 17.1% year on year, beating analyst revenue expectations by 2.2%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its operating margin. Additionally on the negative front, revenue guidance for the next quarter missed analysts' expectations. However, EPS guidance beat.

Is SMART buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting SMART's revenue to decline 14.3% year on year to $375 million, a further deceleration on the 6.42% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 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 twice over the last two years.

Looking at SMART's peers in the semiconductors segment, only Micron Technology has so far reported results, with revenues decreasing 39.6% year on year, and beating analyst estimates by 2.15%. The stock was down 4.45% 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 down on average 0.02% over the last month. SMART is up 3.2% during the same time, and is heading into the earnings with analyst price target of $33.2, compared to share price of $24.5.

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