Smart home company SmartRent (NYSE: SMRT) will be reporting earnings this Wednesday before market open. Here’s what to look for.
SmartRent beat analysts’ revenue expectations last quarter, reporting revenues of $38.68 million, down 6.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates.
Is SmartRent a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting SmartRent’s revenue to grow 3.4% year on year, a reversal from the 21% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. SmartRent has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at SmartRent’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 166%, beating analysts’ expectations by 27.7%, and Atkore reported revenues up 8.1%, topping estimates by 4.7%. Bloom Energy traded down 1.9% following the results.
Read our full analysis of Bloom Energy’s results here and Atkore’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the electrical equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2% on average over the last month. SmartRent is down 9.2% during the same time and is heading into earnings with an average analyst price target of $1.35 (compared to the current share price of $1.03).
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