Smart Global Holdings Stock Jumps: Company Reports Mixed Q1 Results, Issues Q2 Guidance, Announces Share Repurchase Authorization
Portfolio Pulse from Ryan Gustafson
SMART Global Holdings Inc. (SGH) reported Q1 adjusted EPS of $0.24, beating estimates of $0.16, but missed revenue expectations with $274.2 million versus the anticipated $274.997 million. Year-over-year revenue declined by 30.0%. The company's cash position improved to $529.059 million. SGH announced a new $75 million share repurchase authorization, totaling $150 million over two years. Q2 guidance is set for an adjusted EPS of $0.25 ± $0.10 and revenue of $285 million ± $25 million. After-hours trading saw SGH shares rise 9.37% to $20.20.
January 09, 2024 | 10:52 pm
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SMART Global Holdings beat Q1 EPS estimates but missed on revenue, announced a $75 million share repurchase, and provided Q2 guidance. Shares rose 9.37% after hours.
The positive earnings surprise and the announcement of a share repurchase program are likely to be viewed favorably by investors, contributing to the after-hours stock price increase. The revenue miss may temper some enthusiasm, but the strong cash position and optimistic Q2 guidance provide a positive outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100