Why SMART Global Holdings Stock Is Sliding After Hours

SMART Global Holdings Inc SGH shares are trading lower in Tuesday's after-hours session after the company reported mixed fiscal second-quarter results and issued weak guidance. 

• Q2 Revenue: $429 million missed estimates of $434.93 million
• Q2 EPS: 76 cents beat estimates of 60 cents

Revenue was down 4.5% year-over-year. The company ended the quarter with $376 million in cash and equivalents.

"We remain disciplined in managing our expenses given the continued challenging economic environment, while maintaining strategic investments to capitalize on the tailwinds of AI, machine learning, data analytics, networking and specialty lighting, which we believe will drive long-term growth for SGH and create value for our shareholders," said Mark Adams, CEO of SMART Global.

Outlook: SMART Global sees fiscal third-quarter revenue in a range of $355 million to $395 million versus estimates of $408.23 million. The company expects third-quarter adjusted earnings to be between 30 cents and 50 cents per share versus estimates of 42 cents per share.

SGH Price Action: SMART Global has a 52-week high of $26.15 and a 52-week low of $12.04.

The stock was down 3.09% at $16.02 at the time of publication, according to Benzinga Pro.

Photo: courtesy of SGH.