SMTC Corporation (SMTX) Preview: The Effect of Past Earnings

92 days have passed by since the last earnings report for SMTC Corporation (NASDAQ:SMTX) and the new quarterly results look set to arrive today. The shares of SMTX at the moment are trading at a volume of 0.02 million, which compares with its normal daily standard volume of 70070 shares. This has led to the shares of the company declining by -1.05%, currently exchanging hands at $3.77 a share. SMTX stock has been up by $2.21 (-36.96%) ever since it reached its 52-week high of $5.98 back in January 28, 2019. It has progressed below its 50-day moving average of $3.7991 and is down -2.84% over the past week. The stock has retreated 0% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the SMTX share price due for a breakout?

SMTC Corporation (SMTX) Forecasts And Latest Quarter Earnings

Ahead of their fiscal second-quarter to be released on Thursday, Aug 08, 2019, 2 analysts who are covering the company are estimating that it will record a profit of $0.02 per share, with analysts having different outlooks from -$0.01 to $0.06. The profit view for a complete financial year for SMTC Corporation is expected to be around $0.17 in current year, a decline of nearly 183.33% from last year which was $0.06.

Analyzing The Earnings History Of SMTC Corporation (NASDAQ:SMTX)

In the past few years, the SMTX stock has been known to miss the Wall Street’s earnings projection. The company missed 16% of the time, according to the data pulled on their earnings, was able to meet predictions on 0 occasions and topped expectations 0 times. Looking at the past trend, the price of SMTC Corporation shares had sank following the release of their earnings in 21 of the last 30 quarters.

Looking back, here is how SMTC Corporation (SMTX) stock reacted to earnings misses and beats. It gave investors reason to cast doubts with the price going down after 2 of the last four earnings reports. The shares of SMTC Corporation recorded 2.89%, -17.73%, 6.87% and -1.15%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were -0.26%, -26.87%, 10.44% and -6.13%. Their post-earnings price movements have resulted in an average decrease of -2.28% and an average decrease of -5.71% in SMTC Corporation on next day and 7th day, sequentially. SMTX’s one month stock performance led to its shares declining by -6.45% with a return of 45% witnessed over the last 52 weeks.

The higher number of analysts at Reuters has assigned a buy or better ratings (2) on the SMTC Corporation stock, while 0 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $7.5. This price target implies potential upside of 98.94 percent over the next 12 months based on the current share price.

SMTC Corporation (SMTX) Post Earnings Announcement Drift (PEAD)

Back on May 08, 2019, SMTC Corporation (NASDAQ:SMTX) released its Q1 results, in which it recorded a loss of -$0.05 that fell short of consensus estimates of $0.01. After the earnings were reported, the price of SMTX stock kicked off the session at $3.58 and remained in a range of $3.63 to $3.98 on the first day. The shares were priced at $3.92 at the close with a total volume of shares being 168120.

On March 14, 2019, the Q4 earnings report was disclosed with EPS of $0.02. This was above the estimation of $0.01 per share. The stock price range of SMTX was between $5.7 and $5.74 on the first-day post announcement, after opening the day at $4.08. The session came to close at $4.5 and there was a total volume of 640812 shares.