Super Micro Shares Dip On Mixed Q3 Results: EPS Beat, Sales Miss

Super Micro Computer Inc SMCI reported its third-quarter financial results after the bell Tuesday. Here's a look at the key figures from the report. 

The Details: Super Micro Computer reported quarterly earnings of $6.65 per share which beat the analyst consensus estimate of $5.78 by 15.05% and represents a 307.98% increase over earnings of $1.63 per share from the same period last year.

Quarterly sales clocked in at $3.85 billion which missed the analyst consensus estimate of $3.952 billion by 2.58% and is a 200.08% increase year-over-year.

Cash flow used in operations for the third quarter was $1.52 billion and capital expenditures were $93 million. As of March 31, 2024, total cash and cash equivalents was $2.115 billion and total bank debt and convertible notes were $1.863 billion.

“We had yet another record quarter with fiscal Q3 revenue of $3.85 billion with non-GAAP EPS of $6.65 per share. This year-over-year revenue growth of 200% and year-over-year non-GAAP EPS growth of 308% was well above our industry peers,” said Charles Liang, CEO of Supermicro.

Outlook:  Super Micro expects fourth-quarter net sales of $5.1 billion to $5.5 billion and non-GAAP net income per diluted share of $7.62 to $8.42.

The company raised its full-year 2024 guidance for revenues from a range of $14.3 billion to $14.7 billion to a range of $14.7 billion to $15.1 billion and established guidance for non-GAAP net income per diluted share of $23.29 to $24.09.

“Strong demand for AI rack scale PnP solutions, along with our team’s ability to develop innovative DLC designs, enabled us to expand our market leadership in AI infrastructure. As new solutions ramp, including fully production ready DLC, we expect to continue gaining market share. As such, we are raising our fiscal year 2024 revenue outlook from $14.3 to $14.7 billion to a new range of $14.7 to $15.1 billion,” said Liang.

SMCI Price Action: According to Benzinga Pro, Super Micro shares are down 8.01% after-hours at $790 at the time of publication Tuesday.

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