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San Jose, California-based Super Micro Computer, Inc. (SMCI) develops and manufactures high-performance server and storage solutions based on modular and open architecture. With a market cap of $18.6 billion, Super Micro’s operations span the United States, Europe, Asia, and internationally.
It is expected to release its second-quarter earnings on Monday Feb. 3. Ahead of the event, analysts expect SMCI to report a non-GAAP profit of $0.54 per share, up 5.9% from $0.51 per share reported in the year ago-quarter. The company has exceeded analysts’ bottom-line estimates twice in three of the past reported quarters, while missing on one other occasion. Super Micro hasn’t filed its previous quarters’ 10Q yet.
For fiscal 2025, SMCI is expected to report an adjusted EPS of $2.17, up nearly 8% from $2.01 in fiscal 2024. While, in fiscal 2026, its earnings are expected to grow 9.7% year-over-year to $2.38.
SMCI stock has gained 18.8% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund’s (XLK) 27.1% surge and the S&P 500 Index’s ($SPX) 26.3% returns during the same time frame.
Super Micro Computer experienced a remarkable start to the year, with its stock price reaching an all-time high of $122.90 in early March. However, the stock has since plummeted by 72.9% from that peak. The significant drop in SMCI’s stock price is primarily due to the company's failure to file its Form 10-K for the fiscal year ending June 30, 2024, and Form 10-Q for Q1 2025, amid ongoing corporate governance issues.
SMCI's stock prices tanked 18.1% in the trading session following the release of its preliminary Q1 financial information on Nov. 5. The company expects its Q1 net sales to range between $5.9 billion and $6 billion, which falls significantly short of analysts' estimates of approximately $6.5 billion. However, it still reflects a notable 182% year-over-year growth. Additionally, the company's Q2 guidance also fell short of Wall Street expectations, and the absence of a timeline for filing the Form 10-K further eroded investor confidence.
Analysts have taken a cautious stance on the SMCI’s prospects, it has a consensus “Hold” rating. Out of the 12 analysts covering the stock, two advocate “Strong Buy,” one advises “Moderate Buy,” seven recommend “Hold,” and two suggest a “Strong Sell” rating. Its mean price target of $50.59 represents a 51.8% premium to current price levels.
