SMART Global Holdings, Inc. (SGH) Tops Q2 EPS by 2c, Revenues Beat; Offers Q3 EPS/Revenue Guidance
SMART Global Holdings, Inc. (NASDAQ: SGH) reported Q2 EPS of $0.52, $0.02 better than the analyst estimate of $0.50. Revenue for the quarter came in at $272 million versus the consensus estimate of $268.93 million.
Second Quarter Fiscal 2020 Highlights:
- Net sales of $272.0 million
- GAAP net income (loss) of ($9.7) million, or ($0.41) per share
- Non-GAAP net income of $12.8 million, or $0.52 per share
- Adjusted EBITDA of $22.3 million
- Increased cash and equivalents to $141.9 million
“In the second quarter of fiscal 2020, we generated financial results above the midpoint of our guidance range driven by excellent performance from our team members along with better than expected performance from both our Specialty Memory and Brazil businesses,” commented Ajay Shah, Chairman and CEO. “Despite the challenges we all face during the COVID-19 crisis, we remain optimistic about the longer-term positioning of our businesses.”
“During the quarter we significantly improved our capital structure through the issuance of $250 million of convertible senior notes in a private placement, the majority of the proceeds of which we used to pay down our existing, higher interest rate debt, thereby recapitalizing our balance sheet, lowering our interest expense, eliminating quarterly principal payments and extending the debt maturity,” added Jack Pacheco, COO and CFO.
GUIDANCE:
SMART Global Holdings, Inc. sees Q3 2020 EPS of $0.63-$0.73, versus the consensus of $0.67. SMART Global Holdings, Inc. sees Q3 2020 revenue of $270-300 million, versus the consensus of $278.8 million.
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