SMART Global Holdings Inc. SGH shares are trading higher in Tuesday’s after-hours session after the company reported its first-quarter financial results. Here’s a summary of the details.
Positive Earnings Surprise: Smart Global Holdings reported adjusted earnings per share of 24 cents, beating estimates of 16 cents.
The company’s revenue of $274.2 million, however, missed analyst expectations of $274.997 million, marking a 30.0% decline year-over-year.
Despite the missed revenue, the company’s cash and cash equivalents grew to $529.059 million as of Dec. 1, 2023, up from $365.563 million as of Aug. 25, 2023.
Share Repurchase Authorization: In addition to the earnings report, the company’s board approved a $75 million share repurchase authorization, bringing total authorizations over the past two years to $150 million.
Guidance for Q2: Smart Global Holdings anticipates second-quarter adjusted earnings per share of 25 cents plus or minus 10 cents, with revenue expected to be $285 million plus or minus $25 million.
Smart Global Holdings’ CEO, Mark Adams, expressed satisfaction with the company’s performance and strategic direction. “We are pleased with the progress we are making on our transformation journey, marked by the strategic divestiture of our Brazil business and another quarter of record non-GAAP gross margins,” said Adams.
On the financial front, Adams added, “Additionally, we ended our first quarter with record cash and short-term investments of $553 million, allowing us to continue investing strategically in AI, developing products based on advanced memory technologies and strengthening CreeLED’s portfolio to enable future long-term growth.”
Market Response: Shares of Smart Global Holdings were up 9.37% at $20.20 in the after-hours session at the time of publication, according to Benzinga Pro.
