Smith Micro Software, Inc. (SMSI) came out with a quarterly loss of $0.12 per share, compared to the Zacks Consensus Estimate of a loss of $0.13. This compares with a loss of $0.3 per share a year ago. These figures have been adjusted for one-off items.
This quarterly report represents an earnings surprise of +7.69%. A quarter ago, it was expected that this company would post a loss of $0.13 per share when it actually produced a loss of $0.14, delivering a surprise of -7.69%.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Smith Micro Software, which belongs to the Zacks Computer-Software industry, posted revenues of $4.35 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.21%. This compares to revenues of $4.65 million a year ago. The company has failed to beat consensus estimates over the last four quarters.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings outlook.
Shares of Smith Micro Software have lost about 48.8% since the beginning of the year, versus the S&P 500’s gain of 15.1%.
While Smith Micro Software has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this important question, but one reliable measure that can help investors address this issue is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock prices and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Prior to this earnings release, the estimate revisions trend for Smith Micro Software was favorable. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the stock is expected to outperform the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year will change in the coming days. The current consensus EPS estimate is -$0.09 on $4.5 million in revenues for the coming quarter and -$0.51 on $18 million in revenues for the current fiscal year.
