Smart Global Holdings Q3 Results Beat Street View, Outlook Strong; Shares Up 5%

Shares of Smart Global Holdings Inc. (SGH) gained over 5% in extended session Tuesday after the company reported a third-quarter result that trumped Street estimates and issued a strong outlook for the current quarter.

For the third quarter, Smart Global reported a loss of $7.2 million or $0.30 per share, compared to $0.8 million or $0.03 per share last year.

On an adjusted basis, the company reported profit of $35.5 million or $1.39 per share, up from $17.1 million or $0.70 per share last year.

Third-quarter sales surged 56% to $437.7 million from $281.3 million last year.

Analysts polled by Thomson Reuters expected earnings of $1.09 per share on revenues of $415.57 million for the quarter. Analysts’ estimates typically exclude one-time items.

Commenting on the results, CEO Mark Adams said, “In its first quarter as part of the SGH family, Cree LED achieved strong results. Coupled with continued top line growth in our Intelligent Platform Solutions Group and strong operating performance in our Memory Solutions Group, comprised of Specialty Memory and Brazil, these results reinforce the benefits of our growth and diversification strategy.”

Looking forward to the fourth quarter, the company expects adjusted earnings of $1.60 per share, plus or minus 0.15 per share, and revenues of $440 million to $480 million. Analysts currently estimate earnings of $1.23 per share on revenues of $439.35 million for the quarter.

SGH closed Tuesday’s trading at $47.55, down $0.55 or 1.14%, on the Nasdaq. The stock, however, gained $2.45 or 5.15%, in the after-hours trade.

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