A bad earnings report can often give a stock a very bad day in response. That’s what’s happening to Smartsheet (NASDAQ:SMAR), down 19% at one point in Thursday afternoon’s trading. The worst part is that Smartsheet’s earnings report wasn’t even that bad, to begin with.
In fact, Smartsheet posted earnings per share of $0.18, which was better than double the $0.08 per share that analysts projected. Revenue came in at $219.9 million against the $214.16 million analysts were looking for, a 30.7% year-over-year increase.
The problem for Smartsheet seemed to be guidance. Management expects revenue for the second quarter of its 2024 fiscal year to come in between $228 million and $231 million. That’s just barely ahead of the $230.38 million that analysts were expecting. Similarly, for full-year 2024 figures, Smartsheet projected between $943 million and $948 million, just barely in line with the $945.96 million that analysts looked for.
Despite the losses today, analysts are very much on Smartsheet’s side. With 12 Buy ratings and four Holds, analyst consensus calls Smartsheet stock a Strong Buy on a three-to-one basis. Further, it offers investors a 29.97% upside potential thanks to its average share price of $51.56.
