Categories AlphaGraphs, Earnings, Industrials

Smart Global Holdings posts weak Q2 results, Q3 guidance

Smart Global Holdings (SGH) reported a 65% dip in earnings for the second quarter of 2019 as its Brazil business was hurt by worsening pricing environment. The bottom line exceeded analysts’ expectations while the top line missed consensus estimates. Also, the specialty memory services maker guided third-quarter earnings and revenue below the Street’s view.

Net income plunged 65% to $12.8 million and earnings plummeted 66% to $0.55 per share. Adjusted earnings dropped by 53% to $0.77 per share.

Net sales declined 3.2% to $304.1 million. The Brazil business, where the company supplies commodity memory products to high volume requirements in smartphones and PCs, was hurt by the worsening pricing environment for such products.

Smart Global Holdings second quarter 2019 net sales snapshot

Looking ahead into the third quarter of fiscal 2019, the company expects net sales in the range of $260 million to $270 million and adjusted earnings in the range of $0.34 to $0.38 per share. GAAP earnings are anticipated to be in the range of $0.13 to $0.17 per share and gross margin is predicted to be 17% to 19%.

The company said it has made good progress towards realizing synergies from its purchase of Penguin Computing and remained focused on disciplined execution to drive its financial performance.

Shares of Smart Global ended Thursday’s regular session up 2.89% at $23.87 on the Nasdaq. Following the earnings release, the stock tumbled over 14% in the after-market session.


Listen to on-demand earnings calls and hear how management responds to analysts’ questions

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Viewing Highlight