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

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top