Back to top

Image: Bigstock

What's in the Offing for SMART Global's (SGH) Q4 Earnings?

Read MoreHide Full Article

SMART Global Holdings, Inc. (SGH - Free Report) is slated to report fourth-quarter fiscal 2021 results on Oct 12.

For the fiscal fourth quarter, the company expects revenues between $440 million and $480 million. The Zacks Consensus Estimate for the same is pegged at $461.7 million.

SMART Global anticipates non-GAAP earnings between $1.45 and $1.75 per share. The consensus mark for fiscal fourth earnings is pegged at $1.60 per share.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 12.19%, on average.

SMART Global Holdings, Inc. Price and EPS Surprise


SMART Global Holdings, Inc. Price and EPS Surprise

SMART Global Holdings, Inc. price-eps-surprise | SMART Global Holdings, Inc. Quote

Factors to Consider

SMART Global’s strong execution and solid momentum across Brazil Products, Intelligent Platform Solutions and LED Solutions are expected to have driven its performance in fourth-quarter fiscal 2021.

The inclusion of Cree LED in the company’s business and the positive contributions from it are likely to get reflected in top-line growth. Growing traction across Cree’s general lighting, specialty lighting, video and horticulture lighting products is expected to have been a major positive.

The robust Intelligent Platform Solutions segment is anticipated to have continued benefiting the company’s SMART Embedded and SMART Wireless businesses in the quarter-to-be-reported on the back of strong momentum across Penguin Computing and Penguin Edge brands.

Strengthening Penguin's cloud-based solutions as well as solutions focused on core, data center, AI and analytics are expected to have driven the company’s customer momentum in the quarter under review.

Solid unit demand in PC notebooks and servers is likely to have aided growth in the Brazil Products segment in the soon-to-be-reported quarter.

The company is also upbeat about its Specialty Memory business. Expanding product families is likely to have driven sales within this business unit in the to-be-reported quarter.

However, the impacts of the coronavirus-induced supply-chain constraints and other uncertainties are expected to get reflected in SMART Global’s fiscal fourth-quarter results.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for SMART Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SMART Global currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.

Texas Instruments Incorporated (TXN - Free Report) has an Earnings ESP of +9.22% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

HubSpot Inc. (HUBS - Free Report) has an Earnings ESP of +0.53% and a Zacks Rank of 3, currently.

Fortive Corporation (FTV - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3, currently.

Published in