Smart Global Reports Q2 Results, Issues Q3 Guidance

Smart Global Holdings, Inc. SGH reported its second-quarter financial results after the bell Tuesday. Here's a look at the details. 

The Details: The company reported quarterly earnings of 27 cents per share, beating the analyst consensus estimate of 25 cents by 8%.

Quarterly sales came in at $284.8 million, beating the analyst consensus estimate of $283.792 million, yet representing a 33.64% decrease from sales of $429.174 million from the same period last year.

Smart Global reported Non-GAAP gross margin of 31.5%, versus 33.3% in the prior quarter.

“The second quarter marked a period of continued progress towards our transformation into a high-value enterprise solutions company,” said Smart Global CEO Mark Adams.

“Leveraging our deep-rooted expertise in high-performance computing and specialty memory solutions, we are uniquely positioned to help our valued customers address the rapid adoption of AI,” added Adams.

Outlook: Smart Global saw third-quarter earnings of 30 cents per share, plus or minus 15 cents, versus the 28 cent estimate. The company expects third-quarter revenue of $300 million, plus or minus $25 million, versus the $307.864 million estimate.

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SGH Price Action: According to Benzinga Pro, Smart Global Holdings shares are down 11.57% after-hours at $22.92 at the time of publication Tuesday.

Photo: Pete Linforth from Pixabay