TLDR
- Super Micro Computer (SMCI) stock closed Tuesday at $31.39, then rose 7.65% to $33.79 in premarket Wednesday.
- Fiscal Q1 revenue hit $19.95 billion, up from $5 billion a year earlier.
- Adjusted EPS was $1.81, compared with 35 cents last year.
- Q2 guidance calls for revenue of $19.5 billion to $21.5 billion.
- The stock had fallen 27% over the past month before the report.
Super Micro Computer (SMCI) stock closed Tuesday at $31.39, up 3%. It then gained about 8% in after-hours trading.
Super Micro Computer, Inc., SMCI
By premarket Wednesday, the stock was up 7.65% at $33.79. The move followed fiscal first-quarter results released after the bell.
Revenue came in at $19.95 billion, nearly four times the $5 billion from a year ago. Adjusted earnings were $1.81 per share, up from 35 cents.
Analysts surveyed by FactSet expected $1.23 per share on $17.53 billion in revenue. The company topped both marks.
Gross margin reached 12.8%, up from 9.3% a year earlier. Wall Street had been watching component costs as a possible drag on margins.
The Company Beat Its Own Preview
On Oct. 20, Super Micro shared preliminary numbers. It estimated revenue of $18.5 billion to $19.5 billion.
Final revenue landed above the top of that range. Gross margin also beat the preview of 12% to 12.5%.
CEO Charles Liang said the company’s shift toward being a “Total AI and IT Datacenter Solution provider” continues to accelerate. He described the $19.9 billion quarter as record revenue.
Liang also pointed to gigawatt-scale data centers and single-container PODs. He cited enterprise partnerships and growing global production capacity.
For the second quarter, Super Micro expects adjusted earnings of $1.66 to $1.90 per share. It sees revenue of $19.5 billion to $21.5 billion.
Analysts had forecast earnings of $1.14 per share. Revenue estimates were $18.1 billion in one report and $16.35 billion in another.
A Rough Stretch Before the Report
The stock had dropped 27% in the month before earnings. Gartner issued a report saying 80% of neocloud companies would cease operations by 2030 due to weak returns on invested capital.
CoreWeave (CRWV) and Nebius (NBIS) fell on the report. They are down 40% and 37% over the last month, and CoreWeave is a Super Micro customer.
Super Micro stock is also down 38% over the past 12 months. Questions about profitability drove much of that slide.
Tech investors have grown nervous about AI spending by Big Tech. Intel fell 29% last Friday to $65.58 after reporting mixed third-quarter results.
In premarket trading Wednesday, Super Micro stock was up 7.65% at $33.79.
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