SMART Global Holdings, Inc. SGH is set to unveil its first-quarter fiscal 2024 results on January 9th.
The company anticipates a revenue range of $250 million to $300 million for the upcoming quarter. The current Zacks Consensus Estimate is $274.99 million, suggesting a substantial 40.9% plunge from the previous year’s quarter.
SMART Global foresees non-GAAP earnings per share to be within 0 to 30 cents. The consensus estimate stands at 16 cents per share, indicating a significant drop of 79.7% from the prior-year figure.
With an average trailing four-quarter earnings surprise of 25.3%, the company is set to provide stakeholders with a noteworthy update.
SMART Global Holdings, Inc. Price and EPS Surprise
SMART Global’s strong momentum in the Intelligent Platform Solutions segment is expected to have positively impacted its revenue performance in the fiscal first quarter.
Moreover, the company’s progress with the new brand, Penguin Solutions, is projected to have driven favorable results.
The expansion of Penguin’s cloud-based solution offerings, as well as solutions geared towards core, data center, artificial intelligence (“AI”) and analytics, is likely to have fueled the company’s customer base during the quarter under review.
Furthermore, advancements in Penguin Solutions pertaining to high-performance computing and AI cluster management are presumed to have propelled its market adoption.
Additionally, the robust adoption of core DDR3, DDR4 and Flash products is poised to have strengthened SGH’s presence in the networking, telecom, and storage end markets.
Nevertheless, the challenging global macroeconomic climate and increasing economic uncertainties may exhibit a reflection in SMART Global’s first-quarter results.
A downward trend in memory and LED solutions might emerge as a significant area of concern.
Model Analysis
Unfortunately, our tested model does not decisively predict an earnings beat for SMART Global on this occasion. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) could have bolstered the odds of an earnings beat.
SMART Global presently holds a Zacks Rank #3. For a comprehensive view of potential investments, consider exploring today’s Zacks #1 Rank stocks here.
SGH possesses an Earnings ESP of 0.00%. Discover the most promising stocks to invest in or divest from before their earnings are announced through our Earnings ESP Filter.
Stock Options
Highlighted below are some stocks that are potentially lucrative, based on our model’s assessment of their ability to surpass earnings expectations during this reporting period.
Alphabet GOOGL currently holds a Zacks Rank #2 with an impressive Earnings ESP of +15.16%.
Alphabet’s shares have witnessed a substantial 56.2% surge over the past year, with a projected long-term earnings growth rate of 16.6% for GOOGL.
Amazon AMZN has an Earnings ESP of +29.94% and currently maintains a Zacks Rank #2.
Over the previous year, Amazon’s shares escalated by 67.9%. The predicted long-term earnings growth rate for AMZN stands at 28.5%.
Expedia Group EXPE flaunts an Earnings ESP of +7.76% and presently holds a Zacks Rank #3.
Expedia’s shares have witnessed a significant climb by 53.9% over the past year. The anticipated long-term earnings growth rate for EXPE is 25.3%.
Keep yourself informed about upcoming earnings announcements via the Zacks Earnings Calendar.
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