SMART Global Holdings, Inc. (NASDAQ:SGH) shares were trading more than 3% higher Wednesday morning, following the company’s Q2 beat, led by its Memory Solutions (MS) business, while Intelligent Platforms Solutions (IPS) missed its revenue target as its shipment was capped by a recent exacerbation of microelectronics component shortages.

Q2 EPS came in at $0.87, better than the consensus estimate of $0.72. The company continues to see a strong demand environment across all of its three business segments and suggested its overall backlog for Q4 and even early 2023 looks very healthy.

Despite a tough macro environment, the company continues to execute well with Q2 overall gross margins of 26.0% staying above its long-term target of over 25%.

The company expects Q3/22 EPS to range from $0.67 to $0.83, compared to the consensus of $0.71, and revenue to range from $435 million to $475 million, compared to the consensus of $454 million.