Super Micro Computer Misses Earnings Estimates, Announces 10-for-1 Stock Split

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Super Micro Computer CEO Charles Liang speaks at Computex in Taipei, Taiwan, Wednesday, June 5, 2024. src=”https://s.yimg.com/ny/api/res/1.2/KYT1VscekR2x1iF3NkdjE3k_Q–/YXBwaWQ9aGlnaGxhbmRlcjt3PTk2MDtoPTY0MA–/https://media.zenfs.com/en/investopedia_245/306be66a4bfb2ba27aca66b025aeb899″/>

Key points to remember

• Super Micro Computer Inc. reported fiscal fourth-quarter earnings that beat analysts’ estimates and announced a 10-for-1 stock split.

• Revenue more than doubled from a year earlier and slightly beat analysts’ expectations, but the company’s margins fell as rising costs dragged down profits.

• Super Micro Computer CEO Charles Liang said the company has benefited from “record” demand for AI infrastructure.

supercomputerSMCI) reported fiscal fourth-quarter earnings that missed analysts’ expectations, sending shares lower in extended trading Tuesday. The company also reported a 10-for-1 stock split.

The company’s revenue for the quarter more than doubled year over year to $5.31 billion, slightly above analysts’ expectations, but margins fell as costs rose, dragging down earnings. Net income rose to $353 million, or $5.51 a share, from a year earlier, but fell short of analysts’ expectations.

Record demand for new AI infrastructure

Super Micro Computer CEO Charles Liang said the company has benefited from “record” demand for AI infrastructure.

The CEO added that the company could be “well positioned to become the largest IT infrastructure company, driven by our technology leadership, including large-scale DLC liquid cooling and the business value of our new data center solutions.”

Super Micro Computer said it expects revenue of $6 billion to $7 billion in the first quarter of fiscal 2025, while its full-year sales forecast is $26 billion to $30 billion, beating analysts’ expectations.

The company also announced a future 10-for-1 stock split, with adjusted trading expected to begin October 1.

Shares of Super Micro Computer Inc. fell more than 12% to $540.02 in extended trading at 6:50 p.m. ET on Tuesday, following the company’s earnings report.

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