Super Micro Computer (SMCI) has reported fiscal fourth-quarter earnings that fell short of analysts’ expectations, causing a dip in its stock price during extended trading hours on Tuesday. Alongside the earnings miss, the company announced a 10-for-1 stock split, set to take effect on October 1.
For the quarter, Super Micro Computer’s revenue surged more than 100% year-over-year to $5.31 billion, slightly exceeding analysts’ forecasts. Despite this impressive revenue growth, the company’s profit margins were squeezed by rising costs, resulting in net income of $353 million or $5.51 per share. This figure, while significantly higher than the previous year, did not meet analysts’ projections.
CEO Charles Liang highlighted the company’s strong performance in the artificial intelligence sector, citing “record” demand for AI infrastructure. Liang emphasized that Super Micro Computer is strategically positioned to become a leading IT infrastructure provider, thanks to advancements such as rack-scale DLC liquid cooling and new Datacenter Building Block Solutions.
Looking ahead, Super Micro Computer projects first-quarter fiscal 2025 revenue between $6 billion and $7 billion and full-year sales in the range of $26 billion to $30 billion, surpassing analysts’ estimates.
Despite these positive outlooks, the company’s stock dropped over 12% to $540.02 in extended trading following the earnings announcement.
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
