Super Micro Computer (NASDAQ: SMCI) experienced a significant drop of 20% in share price following its fiscal fourth-quarter earnings report, despite announcing a stock split and strong revenue guidance.
The company reported a 143% revenue increase to $5.31 billion, aligning with analysts' expectations, but its earnings per share (EPS) of $6.25 fell short of the $8.07 expectation due to margin pressures.
Super Micro's gross margin declined from 17% a year ago to 11.3% this quarter, driven by a less favorable product mix, reduced pricing to secure new designs, and higher costs associated with its direct liquid-cooled (DLC) AI GPU clusters. The company expects margins to gradually recover in fiscal 2025.
Super Micro highlighted robust demand for its next-generation air-cooled and DLC rack-scale AI GPU platforms, particularly in the data center market. Despite this growth, a shortage in DLC components delayed about $800 million in revenue until after the quarter ended.
Looking forward, Super Micro forecasts fiscal year revenue of $26 billion to $30 billion, potentially doubling its revenue from the previous year. For the upcoming quarter, it predicts sales between $6 billion and $7 billion, with EPS ranging from $6.69 to $8.27, slightly below analyst expectations.
The company reported a 143% revenue increase to $5.31 billion, aligning with analysts' expectations, but its earnings per share (EPS) of $6.25 fell short of the $8.07 expectation due to margin pressures.
Super Micro's gross margin declined from 17% a year ago to 11.3% this quarter, driven by a less favorable product mix, reduced pricing to secure new designs, and higher costs associated with its direct liquid-cooled (DLC) AI GPU clusters. The company expects margins to gradually recover in fiscal 2025.
Super Micro highlighted robust demand for its next-generation air-cooled and DLC rack-scale AI GPU platforms, particularly in the data center market. Despite this growth, a shortage in DLC components delayed about $800 million in revenue until after the quarter ended.
Looking forward, Super Micro forecasts fiscal year revenue of $26 billion to $30 billion, potentially doubling its revenue from the previous year. For the upcoming quarter, it predicts sales between $6 billion and $7 billion, with EPS ranging from $6.69 to $8.27, slightly below analyst expectations.