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What's in the Offing for SMART Global (SGH) in Q3 Earnings?

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SMART Global Holdings, Inc. (SGH - Free Report) is slated to report third-quarter fiscal 2022 results on Jun 29.

For the fiscal third quarter, the company expects revenues between $435 million and $475 million. The Zacks Consensus Estimate for the same is pegged at $455.03 million.

SMART Global anticipates non-GAAP earnings per share between 67 cents and 83 cents. The consensus mark for fiscal third-quarter earnings is pegged at 75 cents per share, which has been unchanged over the past 30 days.

The company has a trailing four quarters earnings surprise of 27.4%, 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 Memory Solutions and LED Solutions are expected to have driven its performance in third-quarter fiscal 2022.

Strengthening footprints in the networking, telecom and storage end markets, owing to the solid adoption of core DDR3, DDR4 and Flash products, are likely to have aided sales of Memory Solutions in the to-be-reported quarter.

The growing momentum across video, architectural and landscape specialty lighting markets, driven by the strong demand for high-brightness products, is expected to have aided sales of LED Solutions. The increasing adoption of new CV94D products, and solid momentum in design wins across horticulture, indoor sports lighting and road signage applications are anticipated to have been other tailwinds in the quarter under review.

Coming to the Intelligent Platform Solutions segment, the company is likely to have gained from its partnership with Meta, in which it is offering AI-optimized architecture and managed services for the latter’s ultra-scale AI supercomputer.

The growing momentum across its new brand, Penguin Solutions, is anticipated to have been a positive.

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.

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

ASGN (ASGN - Free Report) currently has a Zacks Rank #3 and n Earnings ESP of +1.30%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ASGN’s second-quarter 2022 earnings is pegged at $1.67 per share, indicating a 26.5% rise from the year-ago quarter’s reported number.

Generac Holdings (GNRC - Free Report) has an Earnings ESP of +3.89% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for GNRC’s second-quarter 2022 earnings is pegged at $2.66 per share, suggesting an increase of 11.3% from the prior-year reported figure.

Benefitfocus (BNFT - Free Report) has an Earnings ESP of +9.68% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for BNFT’s second-quarter 2022 loss is pegged at 16 cents per share against the loss of 18 cents per share reported in the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.