SMART Global Holdings Inc (NASDAQ:SGH) shares toppled close to 30% in Friday pre-market trading after the company reported a worse-than-expected decline in fourth-quarter revenue and earnings.
The computing and memory card company said net sales for the quarter declined by 12.6% to $316.7 million, missing the $375 million consensus estimate of Wall Street analysts.
Adjusted earnings per share (EPS) fell 44% from a year earlier to $0.35, below the $0.46 expected by the Street.
Despite continuing to face a challenging global environment, it said it managed to improve its gross margin and exited the quarter with a strong balance sheet, including cash, cash equivalents and short-term investments of $391 million.
“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,” CEO Mark Adams commented in a statement.
Smart Global has guided for Q1 2024 net sales of around $275 million, plus or minus $25 million, and adjusted EPS of $0.15, plus or minus $0.15.
The company’s shares were down 29% at $16.71 ahead of the opening bell.
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