Super Micro Computer (SMCI), a data-center specialist, reported mixed results for its fiscal fourth quarter.
The company missed analyst expectations, posting adjusted earnings of $6.25 per share on sales of $5.31 billion. Analysts polled by FactSet had anticipated earnings of $8.12 per share on sales of $5.32 billion. Despite these results, Supermicro’s earnings rose 78% year-over-year, with sales up 143%, driven by increased investments from hyperscale cloud-computing companies in AI infrastructure.
In addition to its earnings report, Supermicro announced a 10-for-1 stock split, set to take effect on October 1. Initially, SMCI stock surged on the news but later fell 9.7% in after-hours trading, closing at $557.42. During regular trading hours, the stock had risen by 1.3% to $616.94.
For the current quarter, Supermicro forecast adjusted earnings of $7.48 per share on sales of $6.5 billion, which was below Wall Street’s expectations of $7.58 per share on $5.52 billion in sales. This forecast, while still indicating significant growth compared to the previous year’s adjusted earnings of $3.43 per share on sales of $2.12 billion, reflects ongoing challenges and uncertainties.
CEO Charles Liang highlighted the company’s record demand for new AI infrastructures, which has propelled fiscal 2024 revenue up 110% year-over-year to $14.9 billion, with non-GAAP earnings per share rising 87% to $22.09.
He emphasized Supermicro's strategic positioning and technological leadership, particularly in rack-scale DLC liquid cooling and Datacenter Building Block Solutions.
Despite these positive developments, JPMorgan analyst Samik Chatterjee reiterated an overweight rating on SMCI stock but reduced the price target from $1,150 to $950, citing concerns over the sustainability of AI demand and AI server margins.
Supermicro's inclusion on the IBD Tech Leaders list underscores its importance in the tech sector, though it faces ongoing scrutiny and market volatility.
The company missed analyst expectations, posting adjusted earnings of $6.25 per share on sales of $5.31 billion. Analysts polled by FactSet had anticipated earnings of $8.12 per share on sales of $5.32 billion. Despite these results, Supermicro’s earnings rose 78% year-over-year, with sales up 143%, driven by increased investments from hyperscale cloud-computing companies in AI infrastructure.
In addition to its earnings report, Supermicro announced a 10-for-1 stock split, set to take effect on October 1. Initially, SMCI stock surged on the news but later fell 9.7% in after-hours trading, closing at $557.42. During regular trading hours, the stock had risen by 1.3% to $616.94.
For the current quarter, Supermicro forecast adjusted earnings of $7.48 per share on sales of $6.5 billion, which was below Wall Street’s expectations of $7.58 per share on $5.52 billion in sales. This forecast, while still indicating significant growth compared to the previous year’s adjusted earnings of $3.43 per share on sales of $2.12 billion, reflects ongoing challenges and uncertainties.
CEO Charles Liang highlighted the company’s record demand for new AI infrastructures, which has propelled fiscal 2024 revenue up 110% year-over-year to $14.9 billion, with non-GAAP earnings per share rising 87% to $22.09.
He emphasized Supermicro's strategic positioning and technological leadership, particularly in rack-scale DLC liquid cooling and Datacenter Building Block Solutions.
Despite these positive developments, JPMorgan analyst Samik Chatterjee reiterated an overweight rating on SMCI stock but reduced the price target from $1,150 to $950, citing concerns over the sustainability of AI demand and AI server margins.
Supermicro's inclusion on the IBD Tech Leaders list underscores its importance in the tech sector, though it faces ongoing scrutiny and market volatility.