Super Micro Computer CEO Charles Liang at the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024.” src=”https://s.yimg.com/ny/api/res/1.2/KYT1FTR2x1iF3NkdjE3k_Q–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA–/https://media.zenfs.com/en/investopedia_245/306be66a4bfb2ba27aca66b025aeb899″ data-src=”https://s.yimg.com/ny/api/res/1.2/KYT1FTR2x1iF3NkdjE3k_Q–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA–/https://media.zenfs.com/en/investopedia_245/306be66a4bfb2ba27aca66b025aeb899″>
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Super Micro Computer Misses Earnings Estimates, Announces 10-for-1 Stock Split
Annabelle Chih / Bloomberg / Getty Images
Super Micro Computer CEO Charles Liang at the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024.
Key Takeaways
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Super Micro Computer reported fiscal fourth-quarter earnings that missed analysts’ estimates and announced a 10-for-1 stock split.
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Revenue more than doubled year-over-year and came in slightly ahead of analysts’ expectations, but the company’s margins fell as costs rose, holding back profits.
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Super Micro Computer CEO Charles Liang said the company has benefited from “record” demand for artificial intelligence infrastructure.
Super Micro Computer (SMCI) reported fiscal fourth-quarter earnings that missed analysts’ estimates, sending shares lower in extended trading Tuesday. The company also announced a 10-for-1 stock split.
The company’s revenue for the quarter more than doubled year-over-year to $5.31 billion and came in slightly ahead of analysts’ expectations, but margins fell as costs rose, holding back profits. Net income of $353 million or $5.51 per share surged from the year prior, but missed analysts’ projections.
Record Demand for New AI Infrastructure
Super Micro Computer CEO Charles Liang said the company has benefited from “record” demand for artificial intelligence infrastructure.
The CEO added the company could be “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.”
Super Micro Computer said it expects revenue to be between $6 billion and $7 billion for the first quarter of fiscal 2025, while its full-year sales outlook was in the range of $26 billion and $30 billion, above analysts’ projections.
The company also announced a 10-for-1 forward split, with split-adjusted trading expected to start on Oct. 1.
Super Micro Computer shares were down more than 12% at $540.02 in extended trading as of 6:50 p.m. ET Tuesday following the company’s earnings release.
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