Super Micro Computer (SMCI) reported its fiscal third-quarter results after the bell on Tuesday, and investors liked what they saw. The server and datacenter hardware maker beat earnings expectations and issued a strong forecast for the current quarter, sending shares sharply higher in extended trading.
Here's a look at the numbers.
Q3 Earnings: Beat on Profit, Miss on Revenue
Super Micro reported adjusted earnings of 84 cents per share, crushing the consensus estimate of 62 cents by 35.48%. That's the kind of beat that gets attention. But revenue was a different story: the company brought in $10.24 billion, falling short of the Street's $12.33 billion forecast.
On the margin front, non-GAAP gross margin came in at 10.1%, up from 9.7% in the same quarter last year. That's a modest improvement, but in the right direction. The company also reported cash flow used in operations of $6.6 billion and capital expenditures of $97 million.
CEO Charles Liang struck an optimistic tone. "Super Micro's transformation into a total datacenter infrastructure provider is accelerating," he said in the earnings release. "Our margin recovery and the rapid growth of our DCBBS business demonstrate that our business remains robust. With the addition of our new U.S. manufacturing facilities in Silicon Valley, we are exceptionally well-positioned to meet the massive demand for various AI and enterprise verticals."
Q4 Guidance: Stronger Than Expected
Looking ahead, Super Micro expects fourth-quarter adjusted earnings per share of 65 to 79 cents, well above the analyst estimate of 55 cents. Revenue is forecast to be between $11 billion and $12.5 billion, compared to the $11.07 billion consensus. That's a solid outlook, especially given the revenue miss in Q3.
Investors responded enthusiastically. In Tuesday's after-hours trading, SMCI stock jumped 16.56% to $32.44.