Overview of Q1 Results
SMART Global Holdings Inc. SGH witnessed a surge in its stock prices during Tuesday’s after-hours session following the announcement of the first-quarter financial results. The details of the report are as follows:
Financial Performance
What To Know: Smart Global Holdings reported adjusted earnings per share of 24 cents, surpassing the estimated 16 cents. However, the revenue of $274.2 million fell short of analyst expectations, reflecting a 30.0% decline year-over-year.
Liquidity Position
The company’s cash and cash equivalents stood at $529.059 million as of Dec. 1, 2023, rising from $365.563 million as of Aug. 25, 2023.
Smart Global Holdings’ board approved a $75 million share repurchase authorization, bringing the total authorizations over the past two years to $150 million.
Q2 Guidance
The Company anticipates second-quarter adjusted earnings per share of 25 cents plus or minus 10 cents. The revenue is expected to be $285 million plus or minus $25 million.
CEO’s Statement
CEO Mark Adams expressed satisfaction with the company’s progress on its transformation journey, highlighted by the strategic divestiture of its Brazil business. He also celebrated another quarter of record non-GAAP gross margins and the company’s burgeoning cash and short-term investments, reaching $553 million by the end of the first quarter.
Adams added, “We are pleased to continue investing strategically in AI, developing products based on advanced memory technologies, and strengthening CreeLED’s portfolio to foster future long-term growth.”
Stock Prices
SGH Price Action: Shares of Smart Global Holdings soared by 9.37% to $20.20 in the after-hours session at the time of publication, according to Benzinga Pro.
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