Why SMART Global Holdings Stock Fell After-Hours

SMART Global Holdings, Inc. SGH shares are trading lower in Thursday's after-hours session after the company reported worse-than-expected fourth-quarter financial results and issued first-quarter earnings per share and revenue guidance below estimates.

What To Know: The company reported quarterly earnings of 35 cents per share which missed the analyst consensus estimate of 45 cents, a 56.25% decrease over earnings of 80 cents per share from the same period last year. The company reported quarterly sales of $316.66 million which missed the analyst consensus estimate of $375.04 million, a 27.65% decrease over sales of $437.70 million the same period last year.

SMART Global Holdings anticipates first-quarter earnings per share of 15 cents +/- 15 cents, versus the estimate of 40 cents. Revenue is estimated to be $275 million +/- $25 million, versus the $383.44 million estimate.

"Throughout fiscal 2023 the team has made significant progress in our transformational journey towards becoming an enterprise solutions company focused on higher quality revenue and improving gross margins. In the fourth quarter, in what remains a challenging global economic environment, non-GAAP gross margin increased to 31.7%, an improvement of 460 basis points from the same period last year, and non-GAAP earnings were 35 cents per share," said CEO Mark Adams.

"In addition, we exited the fourth quarter with a strong balance sheet, including cash, cash equivalents and short term investments of $391 million."

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SGH Price Action: Shares of SGH were down 23.0% at $18.16 in the after-hours session at the time of publication, according to Benzinga Pro.

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