2 Growth Stocks to Watch After Hours Tuesday

What the stock market gives, the stock market often takes away. That was the case on Tuesday as declines for the Dow Jones Industrial Average (^DJI 0.08%), Nasdaq Composite (^IXIC -0.10%), and S&P 500 (^GSPC 0.13%) more than offset the gains that the three market benchmarks had enjoyed on Monday. Market participants continued to see interest rates rise and geopolitical tensions mount.

Data source: Yahoo! Finance.

After the closing bell, a couple of stocks stood out among the handful that reported their latest financial results. SMART Global Holdings (SGH -0.27%) continued to descend despite reporting some encouraging numbers, but Array Technologies (ARRY -2.55%) bounced back from losses in the regular session to move sharply higher in after-hours trading. Below, we'll look more closely at both companies and what they told investors Tuesday afternoon.

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Smart growth for SMART Global

Shares of SMART Global Holdings were down another 2% in after-hours trading, falling further after a 5% drop in the regular trading session. However, the computing, memory, and LED lighting-solutions provider did see substantial growth in its business in its fiscal second-quarter financial results.

There were a lot of good things in SMART Global's report. Quarterly revenue was up 48% year over year to $449 million. Gross margin soared by nearly seven percentage points on an adjusted basis to 26%. Best of all, SMART Global nearly doubled its adjusted earnings from the year-ago quarter, posting a $0.87 per share profit.

CEO Mark Adams lauded SMART Global's diversified approach. Pointing to opportunities in artificial intelligence, machine learning, data analytics, enterprise storage, edge computing, and the Internet of Things, the SMART Global CEO is looking to invest resources toward finding even more growth ahead. At the same time, though, SMART Global approved a stock buyback program, allowing the company to spend up to $75 million repurchasing its own shares.

SMRT Global has lost about 40% of its value from its highs in early January, so in some ways, a buyback does make some sense. Yet some shareholders might prefer the company to focus on internal investments to bolster growth. It'll be interesting to see how SMART Global decides to proceed.

Array redeems itself

Meanwhile, shares of Array Technologies had a volatile day. After dropping 11 % in the regular trading session, the utility-scale solar  tracker technology provider's stock regained all of that lost ground with a 13% rise after hours.

For growth investors, Array has had a tough year. Quarterly revenue climbed 22% to $220 million, but for the full 2021 year, sales of $853 million were down 2% from 2020 levels. Array pointed to project delays and longer lead times for suppliers and logistics providers for the sluggish top-line growth, and costs also played a key role in hurting the company's profits. For the fourth quarter, Array had an adjusted net loss of $7.8 million, reversing a year-earlier gain. Array eked out a modest $8.7 million adjusted profit for the full year, but adjusted earnings of $0.07 per share were down sharply from $0.93 per share in 2020.

Nevertheless, Array remained optimistic. The company said it had $1.8 billion in total executed contracts and awarded orders -- a new record. Moreover, Array appointed a new CEO, Kevin Hostetler, who is slated to take over the reins.

Array hopes to see revenue soar in 2022, projecting sales of $1.45 billion to $1.75 billion and adjusted earnings of $0.55 to $0.74 per share. If it can achieve that turnaround, then the stock could continue to recover from the steep declines it saw in 2021.