Data center specialist Super Micro Computer late Wednesday handily beat Wall Street's targets for its fiscal first quarter and smashed estimates with its outlook. SMCI stock rose in extended trading.
The San Jose, Calif.-based company, better known as Supermicro, earned an adjusted $3.43 a share on sales of $2.12 billion in the quarter ended Sept. 30. Analysts polled by FactSet had expected Supermicro earnings of $3.29 a share on sales of $2.11 billion. On a year-over-year basis, Supermicro earnings rose a fraction while sales increased 15%.
For the current quarter ending Dec. 31, Supermicro forecast adjusted earnings of $4.64 a share on sales of $2.8 billion. That's based on the midpoint of its outlook. Analysts had been looking for earnings of $4.11 a share on sales of $2.55 billion in the fiscal second quarter. In the year-earlier period, Supermicro earned $3.26 a share on sales of $1.8 billion.
"We are off to a good start to fiscal 2024," Chief Executive Charles Liang said in a news release. Supermicro outperformed in the period despite shortages of graphics processing units, he said.
Based on strong demand for AI infrastructure, Supermicro raised its fiscal 2024 sales guidance to a range of $10 billion to $11 billion, he said. Its prior range was $9.5 billion to $10.5 billion.
SMCI Stock Rises After Report
In after-hours trading on the stock market today, SMCI stock rose 4.3% to 263. During the regular session Wednesday, SMCI stock increased 5.4% to close at 252.27.
Supermicro manufactures enterprise computer hardware optimized for applications such as cloud computing, artificial intelligence, data storage and telecommunications.
Also, Supermicro is working closely with leading AI processor makers AMD and Nvidia on advanced server systems.
Super Micro Computer ranks first out of 14 stocks in IBD's Computer Hardware and Peripherals industry group, according to IBD Stock Checkup. SMCI stock has an IBD Composite Rating of 98 out of 99.
Further, SMCI stock is on the IBD Tech Leaders list.
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