Roth Capital Issues Negative Outlook for SMSI Earnings
Smith Micro Software, Inc. (NASDAQ:SMSI), a company known for crafting software solutions that enhance mobile experiences, is now facing a downtrend in its earnings projections. In a recent research report released on Tuesday, Roth Capital has revised its Q1 2025 earnings estimates for Smith Micro Software. The expectation is now that the company will report earnings of ($0.23) per share, adjusted from a previous estimate of ($0.20).
Analysts have provided a broader view, revising downward the earnings predictions for the coming quarters and years. The new estimates include a Q2 2025 earnings forecast of ($0.21) per share, Q3 2025 earnings at ($0.17) per share, with the overall fiscal year 2025 anticipated at ($0.72) per share. Looking further ahead, Roth Capital predicts that the fiscal year 2026 earnings will amount to ($0.30) per share.
Despite these challenging forecasts, a separate research update saw Smith Micro Software’s stock rating increase. The shares were upgraded from a “sell” rating to a “hold” rating, signaling some positive sentiment in the market.
Smith Micro Software Stock Performance
On the trading front, Smith Micro Software opened with a stock price of $0.75 last Friday. While the company’s 12-month range has seen lows of $0.52 and highs of $3.21, the current trading price reflects a significant decrease from its peak. The firm’s fifty-day moving average stands at $1.29, and the 200-day moving average is $1.03. Currently, the company has a market capitalization of $8.84 million, with a P/E ratio of -0.14 and a beta of 0.75, indicating volatility in its price movements compared to the market.
Institutional Activity and Investment Interest
An analysis of institutional investment patterns reveals that several investment entities have recently adjusted their stakes in Smith Micro Software. XTX Topco Ltd and Virtu Financial LLC entered new positions in the third quarter, valued at $26,000 and $39,000 respectively. In the fourth quarter, Raymond James Financial Inc. also initiated a stake valued at $32,000. Meanwhile, Pacific Ridge Capital Partners LLC amplified its involvement by 122.2%, acquiring 286,540 additional shares to own a total of 521,018 shares valued at $683,000. Geode Capital Management LLC followed suit, raising its stakes by 59.9% to hold 137,979 shares valued at $181,000. Overall, institutional investors now hold 20.80% of the company’s stock, highlighting a significant interest from larger financial players.
About Smith Micro Software
Smith Micro Software, Inc. is engaged in crafting innovative software designed to enrich the digital experiences of mobile and cable service providers across the Americas, Europe, the Middle East, and Africa. The company’s acclaimed SafePath product suite—comprising SafePath Family, SafePath IoT, SafePath Home, and SafePath Premium—provides customers with tools essential for protecting digital lifestyles and managing connected devices indoors and outdoors. Furthermore, Smith Micro Software offers CommSuite, a next-generation messaging platform that aids mobile service providers in delivering enriched voicemail experiences, complete with multilingual voice-to-text transcription capabilities.
The company’s evolving landscape requires a keen understanding of market dynamics and customer needs, and as they navigate these challenges, stakeholders will closely monitor how Smith Micro Software adapts and innovates to maintain its presence in the industry.
