Lisa Su, chairman and CEO of Advanced Micro Devices, left, and Charles Liang, CEO of Super Micro Computer, speak at the AMD Advancing AI event in San Jose, Calif., on Dec. 6, 2023.
David Paul Morris | Bloomberg | Getty Images
Super micro shares fell as much as 15% in extended trading on Tuesday after the server maker reported slightly lower-than-expected revenue for its fiscal third quarter, although it gave upbeat guidance on top-line pricing.
Here’s how the company fared compared to the LSEG consensus:
- Earnings per share: $6.65 adjusted vs. $5.78 expected
- Income: $3.85 billion vs. $3.95 billion expected
The company’s revenue jumped 200% year over year in the quarter ended March 31, according to a statement. This compared to a 103% year-over-year increase in the previous quarter. Net income was $402.5 million, or $6.56 per share, compared with $85.8 million, or $1.53 per share, in the year-ago quarter.
Super Micro raised its fiscal 2024 revenue forecast to $14.7 billion to $15.1 billion from $14.3 billion to $14.7 billion. Analysts polled by LSEG had expected $14.60 billion. The middle of the new range assumes roughly 582% annual revenue growth.
“We are now growing the customer base strongly,” Chief Executive Officer Charles Liang said on a conference call with analysts.
Regardless of the after-hours move, Super Micro shares are up 205% so far this year, while the S&P 500 is up 6%.
The company is up against legacy IT equipment vendors such as Hewlett Packard Enterprise. But last year, investors were willing to bet that Super Micro could become a key provider of servers containing Nvidia GPUs to run artificial intelligence models, sending the stock up 246%.
In March, Super Micro replaced Whirlpool in the S&P 500.
If not for a key component shortage, Super Micro would have delivered more in the quarter, Liang said on the call. He said he expects AI growth to remain strong for many quarters, if not years, to come. The rapid growth prompted the company to raise capital through a secondary offering this year, Liang said.
Super Micro’s supply chain continues to improve, said CFO David Weigand.
The company is eager to sell liquid-cooled servers, which can result in lower energy costs than air-cooled alternatives, Liang said.
https://www.cnbc.com/2024/04/30/super-micro-smci-q3-earnings-report-2024.html
