Thursday, June 30, 2022 - Smart Global Holdings Inc (SGH) reported upside earnings and revenues today.
Smart Global Holdings Inc's earnings came in at an EPS of $0.87 per share, 16.00% higher than estimates for an EPS of $0.75 per share. The firm's earnings are up 24% since reporting $0.7 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.
Analyst projections for Smart Global Holdings Inc revenue came in at a consensus of $455.2 million. Third-Quarter revenues surpassed estimates for $462.5 million by $7.4 million (2%). The company achieved 6% growth year-over-year compared to the firm's revenue of $437.7 million from the year-ago quarter. The higher earnings growth relative to revenue signals Smart Global Holdings Inc has improved its profit margin.
The stock is down 17.41% to $16.75 after the report.
The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.
Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.
Trading in the five days leading up to the report earned Smart Global Holdings Inc a Bearish Sentiment Rank from InvestorsObserver.
Prior to the report, InvestorsObserver gave the stock an overall score of 59. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.
SMART Global Holdings Inc is a designer and manufacturer of electronic products focused on memory and computing technology areas. It specializes in application-specific product development and support for customers in the enterprise, government and original equipment manufacturer (OEM) markets. It operates in three primary product areas: Specialty Memory Products, Brazil Products which is the key revenue driver, and Specialty Compute and Storage Solutions. Its product revenues are derived from the sale of memory modules, flash memory cards, computing products, and storage products; and service revenues are derived from procurement, logistics, inventory management, temporary warehousing, kitting and packaging services. The company has a presence in the U.S., Europe, Asia, and Latin America.