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For the fiscal second quarter, SMAR expects revenues in the range of $273-$275 million, suggesting 16-17% year-over-year growth.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $274.06 million, indicating a rise of 16.33% from the figure reported in the year-ago quarter.
The consensus estimate for fiscal second-quarter earnings is pegged at 29 cents per share, unchanged in the past 30 days.
Smartsheet’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. It has an earnings surprise of 76.85% on average.
Let’s see how things have shaped up for Smartsheet prior to this announcement:
Factors to Note for SMAR
Smartsheet’s fiscal second-quarter performance is likely to have benefited from growth in high-value customers, advanced product features and increased AI tool adoption.
The Enterprise segment remains the fastest-growing part of Smartsheet’s business. This segment includes large transactions and high-value customers, which are expected to have driven continued growth and boosted revenues in the fiscal second quarter.
The company has seen a significant increase in high-value customers, with a 50% year-over-year rise in customers and Annual Recurring Revenue (ARR) of more than $1 million in first-quarter fiscal 2025. Continued growth in this segment is likely to have contributed to higher ARR.
The adoption of Smartsheet’s AI tools, including Smartsheet AI and AnalyzeData, is expected to have further boosted value for customers in the to-be-reported quarter. Nearly half of enterprise customers are already using these tools, which help in generating business logic and content with simple prompts, reducing manual work associated with data analysis.
The introduction of new features, such as Timeline View, Board View and Table View, is expected to have improved user experience and attract more users in the next quarter. These enhancements to Smartsheet’s capabilities in work management and visualization are likely to lead to increased adoption.
Smartsheet’s strong focus on advanced security features, like Smartsheet Safeguard and interoperability solutions, like Data Shuttle and DataMesh, is likely to have attracted enterprise customers with high security and data management needs in the to-be-reported 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Image: Bigstock
Smartsheet Ahead of Q2 Earnings: Should You Invest in the Stock?
Smartsheet Inc (SMAR - Free Report) is slated to report second-quarter fiscal 2025 results on Sept. 5.
For the fiscal second quarter, SMAR expects revenues in the range of $273-$275 million, suggesting 16-17% year-over-year growth.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $274.06 million, indicating a rise of 16.33% from the figure reported in the year-ago quarter.
The consensus estimate for fiscal second-quarter earnings is pegged at 29 cents per share, unchanged in the past 30 days.
Smartsheet Price and EPS Surprise
Smartsheet price-eps-surprise | Smartsheet Quote
Smartsheet’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters. It has an earnings surprise of 76.85% on average.
Let’s see how things have shaped up for Smartsheet prior to this announcement:
Factors to Note for SMAR
Smartsheet’s fiscal second-quarter performance is likely to have benefited from growth in high-value customers, advanced product features and increased AI tool adoption.
The Enterprise segment remains the fastest-growing part of Smartsheet’s business. This segment includes large transactions and high-value customers, which are expected to have driven continued growth and boosted revenues in the fiscal second quarter.
The company has seen a significant increase in high-value customers, with a 50% year-over-year rise in customers and Annual Recurring Revenue (ARR) of more than $1 million in first-quarter fiscal 2025. Continued growth in this segment is likely to have contributed to higher ARR.
The adoption of Smartsheet’s AI tools, including Smartsheet AI and AnalyzeData, is expected to have further boosted value for customers in the to-be-reported quarter. Nearly half of enterprise customers are already using these tools, which help in generating business logic and content with simple prompts, reducing manual work associated with data analysis.
The introduction of new features, such as Timeline View, Board View and Table View, is expected to have improved user experience and attract more users in the next quarter. These enhancements to Smartsheet’s capabilities in work management and visualization are likely to lead to increased adoption.
Smartsheet’s strong focus on advanced security features, like Smartsheet Safeguard and interoperability solutions, like Data Shuttle and DataMesh, is likely to have attracted enterprise customers with high security and data management needs in the to-be-reported 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Costco Wholesale (COST - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco Wholesale’s shares have rallied 35.2% year to date. COST is set to release fourth-quarter 2024 results on Sept. 26.
DICK’S Sporting Goods (DKS - Free Report) has an Earnings ESP of +3.05% and a Zacks Rank #2 at present
DICK'S Sporting Goods’ shares have surged 61.3% year to date. DKS is scheduled to release second-quarter 2024 results on Sept. 4.
FedEx (FDX - Free Report) has an Earnings ESP of +1.56% and a Zacks Rank #3 at present.
FedEx’s shares have moved up 18.1% year to date. FDX is set to release first-quarter fiscal 2025 results on Sept. 19.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.