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3 Stocks Move on Friday

- By Omar Venerio

Shares of SMART Global Holdings Inc. (SGH) fell almost 20% on Friday after announcing second-quarter 2019 results. The company posted earnings of 77 cents per share on $304.1 million in revenue, reflecting a 3.2% decline from the prior-year quarter. Earnings beat estimates by 2 cents, but revenue fell $13.17 million short of expectations.

"SMART continues to execute well across all of our lines of business in a challenging environment," Chairman and CEO Ajay Shah said. "In our second fiscal quarter, our Specialty Products business and our Specialty Compute and Storage Solutions business performed well. Our Brazil business, where we supply commodity memory products to high volume requirements in smartphones and PCs, performed in line with expectations in a worsening pricing environment for such products."

Looking ahead to the third quarter, the company expects net sales in the range of $260 million to $270 million. It projects diluted earnings per share between 13 cents and 17 cents.

Shares of Boxlight Corp. (BOXL) jumped roughly 11% on Friday after the company announced a fourth-quarter 2018 loss of 6 cents per share on $11.98 million in revenue, reflecting a 124.3% year-over-year growth. The company beat revenue estimates by $0.98 million.

"We achieved record revenue for the fourth quarter and full year 2018," CEO Mark Elliott said. "Our strong momentum continued after the important back-to-school season and through the fourth quarter, driving our growth to a company historic quarterly record of $12.0 million for the fourth quarter. We've successfully grown our sales pipeline across the U.S. and in key international markets including Europe and Latin America, which has resulted in the largest sales pipeline in our history."

The gross profit was $3 million, up from $0.6 million in the year-ago quarter. The gross margin was 25.2%, up from 11.3%.

The adjusted earnings before interest, taxes, depreciation and amortization was a loss of $1 million, a decrease of 18% compared to $1.2 million in the prior-year quarter.

For full fiscal 2018, revenue grew 47% to $37.8 million. The gross profit was $8.6 million, an increase of $2.2 million from $6.4 million in 2017. The gross margin was 22.9%, 200 basis points lower than a year ago.

Progress Software Corp. (PRGS) gained nearly 16% after announcing positive results.

The company posted earnings of 50 cents per share, beating estimates by 3 cents, on $89.55 million in revenue, which surpassed expectations of $87.6 million.

Looking to the second quarter, the company expects revenue between $96 million and $99 million, with diluted earnings per share of 55 cents to 57 cents.

Disclosure: The author holds no positions in any stocks mentioned.

This article first appeared on GuruFocus.