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SmartRent Earnings: What To Look For From SMRT

SMRT Cover Image

Smart home company SmartRent (NYSE: SMRT) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.

SmartRent missed analysts’ revenue expectations by 10.2% last quarter, reporting revenues of $35.37 million, down 41.3% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ adjusted operating income estimates.

Is SmartRent a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting SmartRent’s revenue to decline 20.6% year on year to $40.08 million, improving from the 22.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

SmartRent Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SmartRent has missed Wall Street’s revenue estimates six times over the last two years.

Looking at SmartRent’s peers in the electrical equipment segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Vontier’s revenues decreased 1.9% year on year, beating analysts’ expectations by 2.8%, and AMETEK reported flat revenue, falling short of estimates by 0.7%. Vontier traded up 4.7% following the results while AMETEK’s stock price was unchanged.

Read our full analysis of Vontier’s results here and AMETEK’s results here.

There has been positive sentiment among investors in the electrical equipment segment, with share prices up 12.3% on average over the last month. SmartRent is down 8.8% during the same time and is heading into earnings with an average analyst price target of $1.73 (compared to the current share price of $0.97).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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