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SMART Global (SGH) Q2 Earnings & Revenues Beat Estimates
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SMART Global Holdings, Inc. (SGH - Free Report) reported second-quarter 2021 earnings of 87 cents per share, beating the Zacks Consensus Estimate of 80 cents. The figure also improved 67.3% from the year-ago quarter.
Revenues of $304 million surpassed the Zacks Consensus Estimate by 2.7%. Moreover, the figure improved 11.8% year over year.
The top-line growth was driven by better-than-expected demand for its products.
Revenues in Terms of Product Lines
Specialty Memory Products accounted for 38% of second-quarter revenues. Revenues improved 3.6% year over year to $115.5 million.
Brazil Products accounted for 33.9% of second-quarter revenues. Revenues improved 5.6% year over year to $103.1 million.
Specialty Compute and Storage Solutions accounted for the remaining 28.1% of second-quarter revenues. Revenues improved 35.8% year over year to $85.4 million.
SMART Global Holdings, Inc. Price, Consensus and EPS Surprise
Per management, non-GAAP gross margin of 19.5% expanded 10 basis points (bps) from the year-ago quarter.
Operating expenses of $32.1 million decreased 9.9% year over year.
Operating margin was 8.9%, which expanded 260 bps from the prior-year quarter.
Balance Sheet
At second quarter-end, cash and cash equivalents were $139.8 million compared with $164.1 million in the prior quarter. Account receivables were $203.4 million compared with $212.9 million in the prior quarter.
Further, long term debt was $210.8 million at second quarter-end, up from $197.6 million at third quarter-end.
Guidance
For third-quarter 2021, SMART Global expects revenues of $400-$430 million. The Zacks Consensus Estimate for revenues is pegged at $313.5 million.
Long-term earnings growth for Analog Devices, NXP Semiconductors, and ON Semiconductor is currently projected at 12.3%, 10%, and 41.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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SMART Global (SGH) Q2 Earnings & Revenues Beat Estimates
SMART Global Holdings, Inc. (SGH - Free Report) reported second-quarter 2021 earnings of 87 cents per share, beating the Zacks Consensus Estimate of 80 cents. The figure also improved 67.3% from the year-ago quarter.
Revenues of $304 million surpassed the Zacks Consensus Estimate by 2.7%. Moreover, the figure improved 11.8% year over year.
The top-line growth was driven by better-than-expected demand for its products.
Revenues in Terms of Product Lines
Specialty Memory Products accounted for 38% of second-quarter revenues. Revenues improved 3.6% year over year to $115.5 million.
Brazil Products accounted for 33.9% of second-quarter revenues. Revenues improved 5.6% year over year to $103.1 million.
Specialty Compute and Storage Solutions accounted for the remaining 28.1% of second-quarter revenues. Revenues improved 35.8% year over year to $85.4 million.
SMART Global Holdings, Inc. Price, Consensus and EPS Surprise
SMART Global Holdings, Inc. price-consensus-eps-surprise-chart | SMART Global Holdings, Inc. Quote
Operating Details
Per management, non-GAAP gross margin of 19.5% expanded 10 basis points (bps) from the year-ago quarter.
Operating expenses of $32.1 million decreased 9.9% year over year.
Operating margin was 8.9%, which expanded 260 bps from the prior-year quarter.
Balance Sheet
At second quarter-end, cash and cash equivalents were $139.8 million compared with $164.1 million in the prior quarter. Account receivables were $203.4 million compared with $212.9 million in the prior quarter.
Further, long term debt was $210.8 million at second quarter-end, up from $197.6 million at third quarter-end.
Guidance
For third-quarter 2021, SMART Global expects revenues of $400-$430 million. The Zacks Consensus Estimate for revenues is pegged at $313.5 million.
Gross margin is expected to be 19-21%.
Zacks Rank & Stocks to Consider
SMART Global currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Analog Devices, Inc. (ADI - Free Report) , NXP Semiconductors N.V. (NXPI - Free Report) and ON Semiconductor Corporation (ON - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth for Analog Devices, NXP Semiconductors, and ON Semiconductor is currently projected at 12.3%, 10%, and 41.5%, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>