Shares of enterprise solutions provider SMART Global Holdings (NASDAQ: SGH) plunged in pre-market trading after the company reported adjusted earnings of $0.35 per share. This was below Street estimates of $0.46 per share and significantly lower than the previous year’s figure of $0.63.
The company’s net sales declined by 12.6% year-over-year to $316.7 million and missed analysts’ forecasts of $375.03 million.
SMART Global Holdings’ CEO, Mark Adams commented that despite the “challenging global economic environment,” adjusted gross margin increased to 31.7%, an improvement of 460 basis points year-over-year. Adams added, “In addition, we exited the fourth quarter with a strong balance sheet, including cash, cash equivalents, and short-term investments of $391 million.”
SGH Stock Price Performance
Overall, SGH stock has surged by more than 50% year-to-date. None of the Wall Street analysts have covered the stock over the past three months.
