Deutsche Bank analysts provided their outlook on SmartRent, Inc. (NYSE:SMRT) ahead of the upcoming Q3 earnings announcement, noting that demand is healthy but supply/labor limits near-term upside.
The analysts expect Q3/Q4 revenue to be in line with their forecast despite risks of slowing Capex by multi-family owners/operators, as the company continues to work down its high level of backlog (of approximately 100k units), with supply and labor constraints as the limiting factors.
The analysts turned more cautious on the company’s installation capacity next year, as their recent checks suggest the company’s current team can only install a maximum of 25-30k units per month when fully trained, and the company has been prudently slowing down hiring.
Deutsche Bank’s EPS estimate for fiscal 2023 is unchanged at a loss of $0.20, and they continue to expect the company to turn EBITDA positive in the first half of 2024 and cash flow positive in Q4/2023.