Super Micro Computer, Inc. SMCI, which manufactures servers for artificial intelligence applications and processes, reported its fiscal fourth-quarter results Tuesday after the market closed and its stock reacted to the report with a sharp move to the downside.
Quarterly sales jumped about 144% year-over-year to $5.31 billion, with the topline rising about 38% sequentially. The revenue growth was in line with the consensus. Non-GAAP earnings per share came in at $6.25 versus $3.51 a year ago and $6.65 in the previous quarter. The bottom-line result missed the average analysts’ estimate of $8.07.
The earnings miss came on the back of margin contraction, with the quarterly gross margin at 11.2%, down sharply from 15.5% in the third quarter and 17% in the year-ago quarter.
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The board has authorized a 10-for-1 split, with the stock expected to commence trading on a split-adjusted basis on Oct. 1, 2024.
Looking ahead, the company guided first-quarter net sales to $6 billion to $7 billion and fiscal year 2025 sales to $26 billion to $30 billion. The outlook exceeded Street estimates.
The company expects first-quarter non-GAAP net income of $6.69-$8.27 per share.
In premarket trading, the stock fell 12.48% to $539.94, according to Benzinga Pro data.
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