SMART (SGH) to publish earnings report tomorrow: what to expect

Semiconductor maker SMART Global Holdings (NASDAQ:SGH) is set to report earnings tomorrow afternoon. Here’s what to watch for.

SMART met analysts’ revenue expectations in the latest quarter, reporting revenue of $284.8 million, down 26.7% year over year. It was a weak quarter for the company, with disappointing revenue guidance for the next quarter.

Is SMART a buy or sell in terms of profits? Read our full analysis here, it’s free.

Analysts are expecting SMART’s revenue to fall 21.3% year over year to $301.5 million for the quarter, a further slowdown from the 17.1% decline seen in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.

Most analysts covering the company have reaffirmed their estimates over the past 30 days, suggesting they expect the company to maintain its earnings trajectory. SMART has missed Wall Street revenue estimates six times over the past two years.

Looking at SMART’s semiconductor competitors, only Micron Technology has posted results so far. It beat analysts’ revenue estimates by 2%, with year-over-year sales growth of 81.5%. Shares fell 4.1% on the back of those results.

Read our full analysis of Micron Technology’s financial results here.

Investor sentiment in the semiconductor space is positive, with shares up an average of 4.8% over the past month. SMART is up 5.4% in the same time frame and is on track for profits with an average analyst price target of $27.7 (compared to the current share price of $23.1).

At StockStory, we certainly understand the potential of thematic investing. A variety of winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could be identified as promising growth stories with a megatrend driving growth. So in that spirit, we’ve identified a relatively unknown, profitable growth stock using AI growth, available for FREE via this link.