Shares of Smart Global Holdings (SGH) took a hit as the company announced a decline in sales for the fiscal fourth quarter. After-hours trading saw the stock drop by 23% to $18.28, following a 2.7% decrease at Thursday’s market close. Despite this setback, shares of SGH have seen a positive growth of 58% throughout the year.
Based in Milpitas, California, SGH specializes in computing and memory solutions. In their latest report, they revealed a 12.6% decrease in sales, totaling $316.7 million, which fell short of the analyst forecast of $375 million as outlined by FactSet.
On a more positive note, SGH reported a profit of $64.8 million, equivalent to $1.17 per share. In comparison, the previous year saw a profit of $8.86 million, or 18 cents per share.
Looking ahead to the fiscal first quarter, the company anticipates sales from continuing operations to be around $275 million, with a margin of plus or minus $25 million. This projection differs from the FactSet analyst estimate of $385.7 million.
In terms of earnings per share for the first quarter, SGH expects a loss of 16 cents, plus or minus 15 cents. Analysts polled by FactSet predict a slightly higher loss of 17 cents per share.
