Stock Story -
Project management software maker Smartsheet (NYSE:SMAR) will be reporting earnings tomorrow after market hours. Here's what to expect.
Last quarter Smartsheet reported revenues of $245.9 million, up 23.2% year on year, beating analyst revenue expectations by 1.9%. It was a solid quarter for the company, with an impressive beat of analysts' billings estimates. Non-GAAP operating profit also outperformed nicely, showing that there is not only topline strength but operating efficiency and expense leverage. Lastly, guidance was solid, with full year guidance raised from the previous outlook. The company added 358 enterprise customers paying more than $5,000 annually to a total of 19,389.
Is Smartsheet buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting Smartsheet's revenue to grow 20.5% year on year to $255.9 million, slowing down from the 34.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3%.
Looking at Smartsheet's peers in the project management software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Atlassian (NASDAQ:TEAM) delivered top-line growth of 21.5% year on year, beating analyst estimates by 3.6% and Monday.com reported revenues up 35.1% year on year, exceeding estimates by 2.4%. Atlassian traded up 10.8% on the results, and Monday.com was down 7%.
Read the full analysis of Atlassian's and Monday.com's results on StockStory.
Investors in the project management software segment have had steady hands going into the earnings, with the stocks up on average 0.9% over the last month. Smartsheet is down 6.6% during the same time, and is heading into the earnings with analyst price target of $55.7, compared to share price of $41.8.
