Overview of SMART Global Holdings, Inc. Earnings Forecast
SMART Global Holdings, Inc. (SGH) is set to unveil its second-quarter fiscal 2024 outcomes on April 9.
For the fiscal second quarter, the company is eyeing revenues in the range of $260 million to $310 million. The Zacks Consensus Estimate stands at $285.18 million, reflecting a 33.6% decline from the same quarter of the prior year.
SMART Global is expecting non-GAAP earnings per share between 15 cents and 35 cents, with the consensus mark at 25 cents per share, a decline of 67.1% from the corresponding period last year.
In the last four quarters, SMART Global exceeded the Zacks Consensus Estimate thrice, with an average surprise of 29.9%.
Factors Impacting the Outcome
The company’s robust execution and strong momentum in the LED Solutions segment, bolstered by the increasing adoption of Cree LED, are anticipated to positively impact its revenue growth in the second quarter.
Moreover, the performance in Intelligent Platform Solutions is expected to be a contributing factor.
Advancements in Penguin’s cloud-based solutions, with a focus on core, data center, AI, and analytics, are likely to enhance customer traction for SMART Global.
The growing popularity of the company’s immersion cooling technology among leading oil and gas clients for sustainable data centers is poised to drive the momentum of Penguin solutions.
Furthermore, the increasing uptake of CV94D products and a strong showing in design wins across horticulture, indoor sports lighting, and road signage applications are likely to be additional tailwinds in the quarter.
Nevertheless, the challenging global macroeconomic scenario and rising economic uncertainties are expected to have an impact on SMART Global’s second-quarter results.
Furthermore, a slowdown in memory solutions momentum might be a major concern.
Performance Forecast
Our analysis does not definitively foresee 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) augments the chance of an earnings surpass. You can identify promising stocks for investment decisions before their release with our Earnings ESP Filter.
Currently, SMART Global holds a Zacks Rank #3 and an Earnings ESP of 0.00%.
Recommendations for Investors
Here are a few stocks worth considering, based on our model suggesting they have the potential to outperform earnings expectations this reporting period.
Mr. Cooper Group (COOP) has an Earnings ESP of +7.40% and a Zacks Rank #1 at present. COOP is expected to disclose first-quarter 2024 results on April 24, with the consensus estimate for earnings at $2.07 per share, signifying a 76.9% growth from the comparable year-ago quarter’s recorded figure.
AptarGroup (ATR) has an Earnings ESP of +0.59% and a Zacks Rank #2 at present. ATR is set to announce first-quarter 2024 results on April 25, with the consensus estimate for earnings at $1.13 per share, indicating a 19% increase from the year-ago quarter.
Lastly, AZZ (AZZ) has an Earnings ESP of +8.06% and a Zacks Rank #2 at present. AZZ is scheduled to release fourth-quarter fiscal 2024 results on April 22. The Zacks Consensus Estimate for AZZ’s earnings is at 70 cents per share, reflecting an upsurge from the prior-year quarter’s reported figure of 30 cents per share.
Stay informed about upcoming earnings announcements with the Zacks Earnings Calendar.
As the earnings reports roll in, investors await a clearer picture of the financial landscape ahead. The uncertainty permeates amidst the market’s ebbs and flows, with strategic investments keeping the ship steady in the tumultuous waters of financial markets.
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