SMART Global fiscal Q2 results, outlook top expectations

SMART Global said its board authorized $75 million in buybacks, to be carried out from time to time.

Data center technology vendor SMART Global Holdings, owners of brands such as Penguin Computing and Smart Modular, this afternoon reported fiscal Q2 revenue and profit that both easily topped Wall Street's expectations, and an outlook that was higher as well. 

The company also said that its board of directors authorized share buybacks totaling $75 million, to be carried out "from time to time."

The report sent SMART Global shares down slightly in late trading

CEO Mark Adams called the results "solid," adding that they "culminated a strong first half of the fiscal year, and demonstrating the strength of our growth and diversification strategy."

Added Adams. "The results reflect our commitment to operational excellence by focusing on specialty solutions targeting growth markets such as AI, machine learning, data analytics, enterprise storage and edge/IoT. 

"Across all of our businesses, we are investing to capitalize on the growth opportunities in these market segments. In addition, our Board approved a $75 million share repurchase authorization, reflecting their confidence in the strength of our financial position while providing us the flexibility to return capital to our shareholders in a disciplined manner."

Revenue in the three months ended in February rose 48%, year over year, to $449 million, yielding a net profit of 87 cents a share, excluding some costs.

Analysts had been modeling $435 million and 72 cents per share.

For the current quarter, the company sees revenue of $435 million to $475 million, and EPS in a range of 67 cents to 83 cents. That compares to consensus for $452 million and a 71-cent profit per share.

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