Smartsheet (NYSE:SMAR) SMAR is set to report first-quarter fiscal 2021 results on Jun 3.
For the fiscal first quarter, the company expects revenues between $82 million and $83 million. The Zacks Consensus Estimate for revenues is currently pegged at $82.3 million, which suggests 46.5% growth from the year-ago quarter’s reported figure.
Moreover, non-GAAP loss is anticipated in the range of 55-62 cents. The consensus mark for fiscal first-quarter loss has been steady at 20 cents per share in the past 30 days.
Notably, the company beat the Zacks Consensus Estimate for earnings in all of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 29.7%, on average.
Smartsheet Inc. Price and EPS Surprise
Factors to Consider
Smartsheet is constantly rolling out new product offerings and enhancing its existing product line to boost value for its customers. This is likely to have aided the company in acquiring new customers and retain its existing ones in first quarter-fiscal 2021.
In the quarter to be reported, SAP SE (DE:SAPG) SAP expanded its use of Smartsheet’s platform to track participation and report results for global skills management program. Moreover, the company’s dollar net retention rate surged 135%.
This trend is likely to have continued in the to-be-reported quarter driven by the launch of robust marketing offerings that feature new content collaboration capabilities and resource management capabilities as well as integration with Adobe’s ADBE Creative Cloud solution.
Additionally, the company’s expanding international presence is anticipated to have contributed to fiscal first-quarter performance. In the previous quarter, Smartsheet strengthened its footprint in Australia and the APAC region with the opening of a new office in Sydney.
Further, the global COVID-19 outbreak is likely to have driven momentum for Smartsheet’s offerings due to higher demand for robust data collection and risk assessment capabilities across all industries.
Nevertheless, higher expenditure on brand advertising is likely to have kept margins under pressure in the reported quarter. Moreover, the company expects seasonal payments to suppliers and increased sales hiring in the Unitd States, the U.K. and Australia to have impacted margins in the fiscal first quarter.
What Our Model Says
According to the Zacks Model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Smartsheet has an Earnings ESP of 0.00% and a Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
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