SmartRent (SMRT) Q3 earnings report preview: what to look for

What happened

SmartRent will report quarterly earnings on Wednesday morning. Last quarter, the smart home company reported revenue of $39.84 million, up 4% from a year earlier, beating analysts' revenue expectations. Analysts expect 10.6% revenue growth this quarter.

Confirmed

Global impact / market context

SmartRent has missed Wall Street's revenue estimates multiple times over the past two years, so this report tests whether the business is stabilizing. A miss could hurt the stock, while meeting the 10.6% growth expectation would suggest its sales trend is improving.

Analyst inference

Other electrical equipment companies have already reported strong third-quarter results: Bloom Energy grew revenue 138% and Advanced Energy grew 50.3%, both beating estimates. This gives a read on demand across the segment that could inform how investors view SmartRent's own growth outlook.

Analyst inference

What to watch

1. Watch whether SmartRent's revenue grows 10.6% year on year this quarter, reversing the 10.6% decrease it recorded in the same quarter last year. Confirmed
2. Watch whether SmartRent finally beats revenue estimates, since it has missed Wall Street's revenue expectations multiple times over the last two years. Analyst inference
3. Watch management's comments on future sales and costs, since analysts reconfirmed estimates over the last 30 days and expect the business to stay the course. Analyst inference

Evidence

• stockstory.org