SUPER Micro Computer reported quarterly revenue and profit that missed analysts’ estimates, outweighing an annual sales outlook that was billions above Wall Street projections.
Profit, excluding some items, was US$6.25 a share in the period ended Jun 30, the company said on Tuesday (Aug 6). That’s short of Super Micro’s previous forecast and the US$8.25 average analyst estimate. Sales were US$5.31 billion, compared with an average projection of US$5.32 billion, according to data compiled by Bloomberg.
A jump in demand for the equipment that powers artificial intelligence (AI) training and applications has helped drive sales at San Jose, California-based Super Micro, which makes data centre servers. “We are well-positioned to become the largest IT infrastructure company,” chief executive officer Charles Liang said.
The company forecast revenue of US$26 billion to US$30 billion in the fiscal year ending Jun 30, 2025. Analysts, on average, estimated US$23.6 billion.
Still, investors are worried about the longer-term profitability of AI-optimised servers sold by companies such as Super Micro, Dell Technologies, and Hewlett Packard Enterprise, said Woo Jin Ho, an analyst at Bloomberg Intelligence. Super Micro missing its own profitability targets in the recent quarter will likely fuel these anxieties, he said.
The shares first jumped as much as 18 per cent in extended trading on the forecast, before reversing and dropping about 8 per cent at 4.55 pm in New York. The stock earlier closed at US$616.94.
Super Micro also announced a 10-for-1 stock split, with trading beginning Oct 1. The shares have more than doubled in value this year and have been added to the S&P 500 and Nasdaq 100 indexes following increased demand for servers. Still, the stock has declined about 48 per cent from a peak in March. BLOOMBERG
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