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Strength Seen in SMART Global Holdings, Inc. (SGH): Can Its 12% Jump Turn into More Strength?
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SMART Global Holdings, Inc. (SGH - Free Report) shares soared 12% in the last trading session to close at $54.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.6% gain over the past four weeks.
SMART Global Holdings extended its rally, driven by its better than expected results in the second-quarter fiscal 2021. The company reported earnings of 87 cents per share, beating the Zacks Consensus Estimate by 8.7%. The figure also improved 67.3% from the year-ago quarter.
Further, revenues were $304 million which surpassed the Zacks Consensus Estimate by 2.7%. Moreover, the figure improved 11.8% year over year. Strengthening demand environment for the company’s product drove the results.
Additionally, the company has provided positive outlook for third-quarter fiscal 2021 which remains a tailwind.
Price and Consensus
This company is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +25.7%. Revenues are expected to be $313.52 million, up 11.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For SMART Global Holdings, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SGH going forward to see if this recent jump can turn into more strength down the road.
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Strength Seen in SMART Global Holdings, Inc. (SGH): Can Its 12% Jump Turn into More Strength?
SMART Global Holdings, Inc. (SGH - Free Report) shares soared 12% in the last trading session to close at $54.55. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.6% gain over the past four weeks.
SMART Global Holdings extended its rally, driven by its better than expected results in the second-quarter fiscal 2021. The company reported earnings of 87 cents per share, beating the Zacks Consensus Estimate by 8.7%. The figure also improved 67.3% from the year-ago quarter.
Further, revenues were $304 million which surpassed the Zacks Consensus Estimate by 2.7%. Moreover, the figure improved 11.8% year over year. Strengthening demand environment for the company’s product drove the results.
Additionally, the company has provided positive outlook for third-quarter fiscal 2021 which remains a tailwind.
Price and Consensus
This company is expected to post quarterly earnings of $0.88 per share in its upcoming report, which represents a year-over-year change of +25.7%. Revenues are expected to be $313.52 million, up 11.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For SMART Global Holdings, Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SGH going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>