Data-center specialist Super Micro Computer late Tuesday missed analyst estimates for its fiscal fourth quarter 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.
The San Jose, Calif.-based company, also known as Supermicro, earned an adjusted $6.25 a share on sales of $5.31 billion in the quarter ended June 30. Analysts polled by FactSet had expected Supermicro earnings of $8.12 a share on sales of $5.32 billion. On a year-over-year basis, Super Micro earnings rose 78% as sales increased 143%.
Supermicro's sales have surged as hyperscale cloud-computing companies ramp up investments in infrastructure for artificial intelligence applications.
For the current quarter, Super Micro Computer forecast adjusted earnings of $7.48 a share on sales of $6.5 billion. That's based on the midpoint of its outlook. Wall Street was modeling earnings of $7.58 a share on sales of $5.52 billion in the fiscal first quarter ending Sept. 30. In the year-earlier period, Super Micro earned an adjusted $3.43 a share on sales of $2.12 billion.
The company's board authorized a 10-for-1 split of its common stock. Supermicro expects to start trading on a split-adjusted basis on Oct. 1.
SMCI Stock Seesaws After Report
In after-hours trading on the stock market today, SMCI stock initially surged higher before turning south. In recent trades, it was down 9.7% to 557.42. During the regular session Tuesday, SMCI stock rose 1.3% to close at 616.94.
"Supermicro continues to experience record demand of new AI infrastructures propelling fiscal 2024 revenue up 110% year over year to $14.9 billion and non-GAAP earnings per share up 87% to $22.09," Chief Executive Charles Liang said in a news 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 business values of our new Datacenter Building Block Solutions."
Supermicro Stock Gets Price-Target Cut
On Monday, JPMorgan analyst Samik Chatterjee reiterated his overweight rating on SMCI stock but cut his price target to 950 from 1,150.
Super Micro Computer is facing AI demand sustainability concerns and AI server margin concerns, he said in a client note.
SMCI stock is on the IBD Tech Leaders list.
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