Super Micro Computer reports earnings miss with revenues up, expecting solid growth ahead

From Nasdaq: 2024-08-07 12:17:00

Super Micro Computer (SMCI) reported fourth-quarter fiscal 2024 non-GAAP earnings of $6.25 per share, up 78.1% year over year but missed the Zacks Consensus Estimate by 22.2%. Revenues surged 143% to $5.31 billion, surpassing estimates by 0.3%. Year-over-year growth was driven by strong momentum in Server and Storage Systems and Subsystems & Accessories businesses.

Operating details for the quarter show a gross margin of 11.2%, a contraction of 580 basis points year over year. Operating expenses rose 74.5% to $252.94 million, with research and development expenses up 49.6%. Cash and cash equivalents were $1.67 billion as of Jun 30, 2024.

For the first quarter of fiscal 2025, SMCI expects total revenues of $6-$7 billion with anticipated non-GAAP earnings per share of $6.69-$8.27. For fiscal year 2025, net sales are estimated at $26.0-$30.0 billion. The company currently holds a Zacks Rank #4 (Sell). Other better-ranked stocks in the technology sector include Badger Meter (BMI), Arista Networks (ANET), and Apple (AAPL). Badger Meter, ANET, and AAPL have seen positive stock gains in the year-to-date period.



Read more at Nasdaq: Super Micro Computer (SMCI) Q4 Earnings Miss, Revenues Up Y/Y