SMART Global Holdings' Earnings: A Preview

On Tuesday, January 05, SMART Global Holdings SGH will release its latest earnings report. Here is Benzinga's outlook for the company.

Net Income, Earnings, 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

SMART Global Holdings EPS will likely be near $0.7 while revenue will be around $290.93 million, according to analysts. SMART Global Holdings reported a per-share profit of $0.55 when it published results during the same quarter last year. Sales in that period totaled $272.02 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.

If the company were to report earnings in line when it publishes results Tuesday, earnings would be up 27.27%. Sales would be up 6.95% from the same quarter last year. SMART Global Holdings's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of SMART Global Holdings were trading at $37.63 as of January 01. Over the last 52-week period, shares are up 9.29%. Given that these returns are generally positive, long-term shareholders can be satisfied going into this earnings release.

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.