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What to Expect from Smart Technologies

By Seth Jayson – Updated Apr 10, 2017 at 7:18AM

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Checking expectations

Smart Technologies (Nasdaq: SMT) is expected to report Q4 earnings on May 16. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Smart Technologies's revenues will wither -22.4% and EPS will remain in the red.

The average estimate for revenue is $114.8 million. On the bottom line, the average EPS estimate is -$0.04.

Revenue details
Last quarter, Smart Technologies reported revenue of $138.9 million. GAAP reported sales were 25% lower than the prior-year quarter's $185.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$0.02. GAAP EPS were -$0.42 for Q3 compared to $0.09 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.4%, 70 basis points worse than the prior-year quarter. Operating margin was -1.2%, 970 basis points worse than the prior-year quarter. Net margin was -36.6%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $608.9 million. The average EPS estimate is $0.17.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 59 members out of 68 rating the stock outperform, and nine members rating it underperform. Among 11 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 11 give Smart Technologies a green thumbs-up, and give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smart Technologies is outperform, with an average price target of $2.71.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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