Server computer maker Super Micro Computer late Tuesday easily beat analyst estimates for the June quarter and guided higher for the current quarter and full year. SMCI stock jumped in extended trading.
The San Jose, Calif.-based company earned an adjusted $2.62 a share on sales of $1.64 billion in its fiscal fourth quarter ended June 30. Analysts polled by FactSet had expected earnings of $2.16 a share on sales of $1.56 billion. On a year-over-year basis, Super Micro earnings surged 223% while sales jumped 53%.
On July 20, Super Micro raised its guidance for sales and earnings in the June quarter, citing upside from customer design wins. Super Micro topped the high end of that raised guidance on Tuesday.
For the current quarter, Super Micro forecast adjusted earnings of $2.20 a share on sales of $1.57 billion. That's based on the midpoint of its guidance. Analysts had predicted earnings of $1.58 a share on sales of $1.49 billion for the fiscal first quarter ending Sept. 30.
SMCI Stock Jumps After Report
In after-hours trading on the stock market today, SMCI stock surged 4.9% to 61.04. During the regular session Tuesday, SMCI stock fell 4.8% to close at 58.19.
On Aug. 4, SMCI stock broke out of a 12-week consolidation pattern at a buy point of 58.44, according to IBD MarketSmith charts. It dropped below that buy point on Tuesday.
Super Micro Guides Higher For Year Ahead
For its fiscal year ending June 30, 2023, Super Micro predicted adjusted earnings of at least $7.50 a share on sales of $6.2 billion to $7 billion. Wall Street had been looking for earnings of $6.41 a share on sales of $6.17 billion.
In its just-completed fiscal 2022, Super Micro earned an adjusted $5.65 a share, up 128% year over year, on sales of $5.2 billion, up 46%.
"The ramp-up of recent design wins and top-tier customers adopting our plug-and-play rack-scale solutions have given us momentum going into fiscal year 2023," Chief Executive Charles Liang said in a news release.
He added, "We are well on our way to becoming the leading global supplier of rack-scale total IT solutions, powering the world's digital transformation across diverse applications in key market segments including AI, enterprise, cloud, edge/telco and others."
SMCI Stock Has High Composite Rating
SMCI stock is on IBD's Tech Leaders list. It currently ranks first out of 13 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.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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