SmartsheetNYSE: SMAR

The headline numbers for Smartsheet (SMAR) give insight into how the company performed in the quarter ended April 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.

Smartsheet (SMAR) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.18 per share a year ago.

Smartsheet Inc. delivered an upbeat earnings outlook, sending shares of the software maker more than 10% higher in Wednesday's extended session.

BELLEVUE, Wash.--(BUSINESS WIRE)---- $SMAR #earnings--Smartsheet Inc. Announces First Quarter Fiscal Year 2025 Results.

While Excel gives Microsoft Co. NASDAQ: MSFT the dominating position in data analysis and visualization software, as it is globally accepted through education and corporations, it is far from perfect. Regarding project management, platforms like Smartsheet Inc. NYSE: SMAR take the lead but aren't as widely followed as other peers like Salesforce Inc. NYSE: CRM.

The average price targets set by analysts on Wall Street suggest a potential increase of 33.1% for Smartsheet (SMAR). Though the reliability of this metric is uncertain, the positive trend in earnings estimates revisions could lead to an increase in the stock's value.

Smartsheet (SMAR) has become technically an oversold stock now, which implies exhaustion of the heavy selling pressure on it. This, combined with strong agreement among Wall Street analysts in revising earnings estimates higher, indicates a potential trend reversal for the stock in the near term.

Smartsheet's stock has been negatively impacted by quarterly earnings, making it an attractive value play in an expensive market. It faces the same challenges as most of the rest of the software sector, most notably weakness among SMB customers. Over the long run, however, Smartsheet still benefits from greater adoption of distributed workforces. Its growth plus margin profile remains attractive.

Business software company Smartsheet surpassed $1 billion in annualized recurring revenue in the fourth quarter, within the timeframe established by the company during its first analyst day as a public company in 2018.