Smart Global Holdings (SGH) Beats Expectations For Q3

Smart Global Holdings Inc (NASDAQ:SGH), formerly known as Saleen Holdings, was founded in 1988. It went public in May 2017 by pricing its shares at $11 apiece for total proceeds of $58 million. The company is focused on providing specialty memory solutions to the electronics industry. Moreover, it also offers customized and integrated supply chain solutions to customers, helping them manage their supply chain with reduced costs and higher productivity.

The company’s shares are flying high in the current trading session after reporting strong financial results for the third quarter. SGH reported adjusted earnings of $1.39 per share for the three months ended May 28, compared to analysts’ average estimate of $1.09 per share. In addition, revenue for the quarter climbed 56 percent on a year-over-year basis to $437.7 million, ahead of the consensus forecast of $415.5 million.

Speaking on the results, CEO Mark Adams said, “We are proud of our team’s execution in the third quarter of fiscal 2021; we set a quarterly revenue record for the company and surpassed our non-GAAP gross margin and EPS guidance. 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.”

SGH also issued its financial outlook for the fourth quarter. It is anticipating adjusted earnings of around $1.60 per share and revenue in the range of $440 to $480 million for the current quarter. The strong quarterly results and impressive outlook sent SGH stock to a new high of $58.39.

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