Back to top

Image: Shutterstock

SMART Global (SGH) to Post Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

SMART Global Holdings, Inc. (SGH - Free Report) is slated to report first-quarter fiscal 2024 results on Jan 9.

The company expects revenues between $250 million and $300 million for the quarter to be reported. The Zacks Consensus Estimate for the same is pegged at $274.99 million, indicating a 40.9% decline from the year-ago reported quarter.

SMART Global anticipates non-GAAP earnings per share between 0 and 30 cents. The consensus mark for fiscal first-quarter earnings is pinned at 16 cents per share, reflecting a fall of 79.7% from the prior-year reported figure.

The company has a trailing four-quarter earnings surprise of 25.3%, 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 momentum across its Intelligent Platform Solutions segment is likely to have contributed well to its top-line growth in the fiscal first quarter.

Strength across its new brand, Penguin Solutions, is anticipated to have been a positive.

Expanding Penguin's cloud-based solution offerings, as well as solutions focused on core, data center, artificial intelligence (“AI”) and analytics, are expected to have driven the company’s customer momentum in the quarter under review.

The growing capabilities of Penguin Solutions in high-performance computing and AI cluster management fields might have boosted its adoption rate further.

In addition, solid momentum across ztC Edge products might have aided the company in winning new customers during the fiscal first quarter.

This apart, solid adoption of core DDR3, DDR4 and Flash products is expected to have boosted SGH’s presence in the networking, telecom and storage end markets.

However, a challenging global macroeconomic environment and growing economic uncertainties are likely to be reflected in SMART Global’s fiscal first-quarter results.

A weakening momentum across memory and LED solutions might have been a major concern.

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.

SMART Global currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

SGH has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Alphabet (GOOGL - Free Report) currently has a Zacks Rank #2 and an Earnings ESP of +15.16%.

Alphabet shares have gained 56.2% over a year. The long-term earnings growth rate for GOOGL is projected at 16.6%.

Amazon (AMZN - Free Report) has an Earnings ESP of +29.94% and a Zacks Rank #2 at present.

Amazon shares have gained 67.9% in the past year. The long-term earnings growth rate for AMZN is projected at 28.5%.

Expedia Group (EXPE - Free Report) has an Earnings ESP of +7.76% and a Zacks Rank #3 at present.

Expedia shares have gained 53.9% in the past year. The long-term earnings growth rate for EXPE is projected at 25.3%.

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

Published in