SMART Global (SGH) to Post Q3 Earnings: What's in the Cards?
SMART Global Holdings, Inc. SGH is slated to report third-quarter fiscal 2023 results on Jun 29.
The company expects revenues between $355 million and $395 million for the fiscal third quarter. The Zacks Consensus Estimate for the same is pegged at $375.1 million, indicating an 18.9% decline from the year-ago reported quarter.
SMART Global anticipates non-GAAP earnings per share between 30 cents and 50 cents. The consensus mark for fiscal third-quarter earnings is pegged at 40 cents per share, reflecting a fall of 54% from the prior-year figure.
The company has a trailing four-quarter earnings surprise of 24.4%, on average.
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 third 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, AI and analytics, are expected to have driven the company’s customer momentum in the quarter under review.
In the fiscal third quarter, Penguin Solutions rolled out a new version of the Scyld ClusterWare software platform that offers scalable and flexible HPC and AI cluster management as well as a monitoring environment.
This apart, strength 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.
Further, solid adoption of core DDR3, DDR4 and Flash products is expected to have boosted SMART Global’s presence in the networking, telecom and storage end markets.
However, the impacts of the coronavirus-induced supply-chain constraints and other uncertainties are expected to get reflected in SMART Global’s upcoming results.
Further, 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 #2. 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 they have the right combination of elements to beat on earnings this reporting cycle.
Booking Holdings BKNG currently has a Zacks Rank #3 and an Earnings ESP of +32.6%.
Booking Holdings shares have gained 32.6% in the on a year-to-date basis. The long-term earnings growth rate for BKNG is currently projected at 16.5%.
Block SQ has an Earnings ESP of +12.99% and a Zacks Rank #3 at present.
Block shares have gained 0.3% in the past year. The long-term earnings growth rate for SQ is currently projected at 20.23%.
AMETEK AME has an Earnings ESP of +0.94% and a Zacks Rank #2 at present.
AMETEK shares have gained 13.3% in the past year. The long-term earnings growth rate for AME is currently projected at 8.95%.
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AMETEK, Inc. (AME) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
SMART Global Holdings, Inc. (SGH) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
