Finance

SMCI Stock: Super Micro Computer Misses Fourth Quarter Budget Targets

Published

1 week ago

August 6, 2024

SMCI Stock: Super Micro Computer Misses Fourth Quarter Budget Targets

Data center specialist Super microcomputer (SMCI) missed analyst estimates for the fiscal fourth quarter late Tuesday and offered mixed guidance for the current period. But it announced a 10-for-1 stock split. SMCI stock initially jumped on the news but later fell in extended trading.

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The San Jose, California-based company, also known as Supermicro, earned adjusted earnings of $6.25 per share on revenue of $5.31 billion in the quarter ended June 30. Analysts polled by FactSet expected Supermicro earnings of $8.12 per share on revenue of $5.32 billion. . On a year-over-year basis, Super Micro’s revenues rose 78%, while sales rose 143%.

Supermicro’s revenue has soared as large-scale cloud computing companies ramp up their investments in infrastructure for artificial intelligence applications.

For the current quarter, Super Micro Computer expects adjusted earnings of $7.48 per share on revenue of $6.5 billion. That’s based on the midpoint of his prospects. Wall Street expected earnings of $7.58 per share on revenue of $5.52 billion in the fiscal first quarter ended September 30. In the year-ago period, Super Micro earned an adjusted $3.43 per share on revenue of $2.12 billion.

The company’s board authorized a 10-to-1 split of its common shares. Supermicro expects to begin trading on a split-adjusted basis on October 1.

SMCI Stock Seesaws After Report

In after-hours trading on the stock market today, SMCI stock initially rose higher before turning south. In recent trades it fell 9.7% to 557.42. During the regular session Tuesday, SMCI stock rose 1.3% to 616.94.

“Supermicro continues to experience record demand for new AI infrastructures, driving fiscal 2024 revenue up 110% year over year to $14.9 billion and non-GAAP earnings per share up 87% to $22.09,” CEO Charles Liang said in a press release. press release.

He added: “We are well positioned to become the largest IT infrastructure company, driven by our technology leadership, including rack-scale DLC liquid cooling and the corporate values of our new Datacenter Building Block Solutions.”