SMART Global Holdings tops 4Q estimates as specialty memory business grows

SMART Global Holdings Inc (NASDAQ:SGH) announced better-than-expected fiscal-fourth quarter earnings, boosted by its specialty memory business and growing market share in Brazil.

The tech company reported earnings of $1.72 per share on revenue of $374 million compared with $0.79 on revenue of $223.02 million in the previous year’s fourth quarter.

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The California-based company surpassed Wall Street estimates of $1.66 EPS on revenue of $369.22 million.

Shares jumped nearly 9% to $29.51 in Thursday after-hours trading.

For fiscal year 2018, SMART expects earnings between $1.74 to $1.79 per share on net sales between $375 million to $390 million.

The company manufactures specialty memory, storage and hybrid solutions to customers in computing, networking, communications, storage, mobile and industrial markets.

Its division in Brazil continued its strong performance, adding new memory products for PC, server and smartphone applications as well as a new polymer cell-based battery product for smartphones.

SMART announced the acquisition of computing and server solutions company Penguin Computing in a deal valued at up to $85 million, giving the company greater reach into the AI market.

“Our new Specialty Compute and Storage Solutions business led by Penguin Computing performed well in its first quarter as part of SGH. During the quarter we won a number of key contracts with agencies within the Department of Energy, contractors to the Department of Defense and with a number of other enterprise customers for our HPC and AI cluster products,” said CEO Ajay Shah in the company’s press release.

Its board recently welcomed Bryan Ingram, Senior Vice President and General Manager of the Wireless Semiconductor Division at Broadcom Inc (NASDAQ:AVGO).

Contact Lenore Fedow at [email protected]

Follow her on Twitter: @LenoreMariee

Story by ProactiveInvestors