Smith Micro Software, Inc. (NASDAQ:SMSI) Q2 Results: Reports Loss, Falls Short on Revenue Estimates

4 min read | August 01, 2024 05:10 PM PDT | By Team Kalkine Media

Google News:

Smith Micro Software, Inc. (NASDAQ:SMSI) Q2 Results: Reports Loss, Falls Short on Revenue Estimates — Image source: Shutterstock

Recent News

Cipher Mining’s Sharp Rally Puts Fundamentals In Focus

Has CME Group's Pullback Created A Valuation Opportunity?

Is Broadcom Stock Valuation Still Making Sense?

EchoStar Stock Gains Attention As Spectrum Deal Talk Builds

Make Kalkine Media
My Trusted Source

Highlights:

Quarterly Loss and Earnings Miss: Smith Micro Software (NASDAQ:SMSI) reported a quarterly loss of $0.38 per share, missing the Zacks Consensus Estimate of $0.35. This loss compares to $0.08 per share from the previous year, adjusted for non-recurring items, and represents an earnings surprise of -8.57%.

Revenue Decline: The company reported revenues of $5.14 million for the quarter ended June 2024, which is a decrease from $10.34 million a year ago and missed the Zacks Consensus Estimate by 4.82%. Smith Micro has surpassed consensus revenue estimates only once in the past four quarters.

Stock Performance and Future Outlook: Smith Micro Software shares have declined approximately 62.9% year-to-date, compared to the S&P 500's gain of 15.8%. The company's earnings outlook and estimate revisions trend are mixed, leading to a Zacks Rank #3 (Hold), indicating the stock is expected to perform in line with the market in the near future.

Industry Context and Upcoming Competitor Earnings: The Zacks Industry Rank for Computer - Software is in the bottom 39%, with the top 50% of industries outperforming the bottom 50% by more than 2 to 1. Another industry stock, OptimizeRx Corp. (NASDAQ:OPRX), is expected to report a quarterly loss of $0.07 per share on August 8, with revenues projected to increase by 48.1% from the year-ago quarter.

Smith Micro Software, Inc. (NASDAQ:SMSI) reported a quarterly loss of $0.38 per share, missing the Zacks Consensus Estimate of a $0.35 loss. This compares to a $0.08 loss per share a year ago. These figures are adjusted for non-recurring items.

This earnings report represents a surprise of -8.57%. In the previous quarter, the company was expected to post a loss of $0.24 per share but reported a loss of $0.45, a surprise of -87.50%. Over the last four quarters, Smith Micro Software has surpassed consensus EPS estimates only once.

Smith Micro Software, part of the Zacks Computer - Software industry, reported revenues of $5.14 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.82%. This compares to year-ago revenues of $10.34 million. The company has exceeded consensus revenue estimates only once in the past four quarters.

The stock's immediate price movement will depend on management's commentary during the earnings call. Smith Micro Software shares have declined approximately 62.9% since the beginning of the year, compared to the S&P 500's gain of 15.8%.

What’s Next for Smith Micro Software?

While Smith Micro Software has underperformed the market this year, investors are left wondering about the stock’s future.

One reliable measure to address this is the company's earnings outlook, including current consensus earnings expectations for the upcoming quarters and how these expectations have changed recently. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions themselves or rely on a rating tool like the Zacks Rank, which has a strong track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Smith Micro Software was mixed. The company's current status translates into a Zacks Rank #3 (Hold), indicating that the shares are expected to perform in line with the market in the near future.

The current consensus EPS estimate for the coming quarter is -$0.22 on $5.9 million in revenues, and -$1.15 on $24.7 million in revenues for the current fiscal year. The outlook for the industry can significantly impact the stock’s performance. The Zacks Industry Rank for Computer - Software is currently in the bottom 39% of over 250 industries, with the top 50% outperforming the bottom 50% by more than 2 to 1.

Upcoming Earnings in the Same Industry: OptimizeRx Corp. (OPRX)

Another stock in the same industry, OptimizeRx Corp. (NASDAQ:OPRX), is set to report results for the quarter ended June 2024 on August 8. OptimizeRx is expected to post a quarterly loss of $0.07 per share, representing a year-over-year change of -600%. The consensus EPS estimate for the quarter has been revised 32.1% lower over the last 30 days.

OptimizeRx Corp.'s revenues are expected to be $20.47 million, up 48.1% from the year-ago quarter.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.