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Market Overview

SMART Global Holdings's Earnings Outlook

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On Tuesday, April 06, SMART Global Holdings (NASDAQ:SGH) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see SMART Global Holdings reporting earnings of $0.8 per share on revenue of $295.58 million. SMART Global Holdings EPS in the same period a year ago totaled $0.52. Sales were $272.04 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 53.85% increase in the company's earnings. Sales would be up 8.65% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020
EPS Estimate 0.70 0.78 0.67 0.50
EPS Actual 0.78 0.82 0.70 0.52
Revenue Estimate 290.93 M 299.43 M 282.88 M 268.93 M
Revenue Actual 291.70 M 297.03 M 281.29 M 272.04 M

eps graph

Stock Performance

For a full 12 months, the return has risen by 114.09%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. SMART Global Holdings is scheduled to hold the call at 16:30:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings