SMART Global Holdings, Inc. (NASDAQ:SGH) shares closed more than 15% lower on Wednesday despite the company’s reported strong Q1 results, with EPS coming in at $2.16, beating the consensus estimate of $1.99. The upside was driven by strong demand for Intelligent Platform Solutions.

According to the analysts from Deutsche Bank, the company is making good progress in transforming the LED business, expanding the IPS opportunity particularly on the commercial side, and addressing new opportunities (SSD and data centers) in Memory Solutions.

The possible reason for the stock decline may be the investors’ overreaction to the company’s announcement regarding the stock split and revenue outlook.