SMART Global Holdings Inc (NASDAQ:SGH) shares plunged almost 15% in early trade on Wednesday after the memory solutions and LED manufacturer’s quarterly sales missed estimates.
For the fiscal second quarter of 2024, SGH reported sales of $284.8 million, below Street expectations of $285.1 million.
Its adjusted earnings per share (EPS), however, were $0.27, ahead of estimates of $0.25.
"The second quarter marked a period of continued progress towards our transformation into a high-value enterprise solutions company," SGH CEO Mark Adams said in a statement.
"Leveraging our deep-rooted expertise in high-performance computing and specialty memory solutions, we are uniquely positioned to help our valued customers address the rapid adoption of AI.”
Also weighing on SGH’s shares was its weak sales forecast of $300 million at the midpoint of its guidance for fiscal Q3, which fell about estimates of $313.5 million.
It projected adjusted EPS of $0.30 plus or minus $0.15, compared to estimates of $0.32.
SGH shares were down 14.4% at about $22 per share shortly after the stock market opened on Wednesday.