Smart Global Holdings Inc (NASDAQ: SGH) hiked late Thursday afternoon after the company issued strong guidance.
Figures released Wednesday showed the Newark, California-based company updated Q1 guidance, raising adjusted EPS from 79 cents-83 cents to 90 cents-93 cents. Sales guidance was raised from $225 million-$240 million to $250 million-$260 million.
As a result of continued strength in the global memory market, combined with favorable dynamics in the company’s Brazil business, as well as continuing demand for SMART’s Specialty Memory solutions, SGH is now expecting to report stronger first fiscal quarter net sales with demand levels continuing into the second fiscal quarter. In addition, the company now expects to report first quarter GAAP and non-GAAP adjusted EPS above the high end of its previous range
CEO Iain MacKenzie said, “As we benefit from the improving economy and the introduction of new higher density products in SMART Brazil, we currently expect that our second quarter of fiscal 2018 will be similar to the updated results that are provided below for the first quarter which will demonstrate strong year-over-year growth for our second quarter of fiscal 2018.”
SMART claims a leadership role in specialty memory, storage and hybrid solutions serving the electronics industry with standard and custom products for over 25 years. SMART delivers components, modules and solutions to a broad customer base, including OEMs in computing, networking, communications, storage, mobile and industrial markets.
In the final hour of trading on Thursday, SMART climbed $7.12, or 24.8%, to $35.82, within a 52-week trading range of $11.50 to $38.24.
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