Super Micro Q3 earnings preview: Focus on Q4 ramp, market share

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Super Micro Q3 earnings preview: Focus on Q4 ramp, market share
[size=0.875][color=var(--sa-text-color-2)]Apr. 29, 2024 11:45 AM ET[color=var(--sa-text-color-1)]Super Micro Computer, Inc. (SMCI) Stock[color=var(--sa-text-color-2)][color=var(--sa-text-color-2)]NVDABy: [color=var(--sa-text-color-1)]Vansh Agarwal, SA News Editor[color=var(--sa-text-color-1)][size=0.875]1 Comment

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[size=1.125]Super Micro Computer (NASDAQ:[color=var(--sa-link-color)]SMCI) is scheduled to report third-quarter results on Tuesday, April 30th, after market close.

[size=1.125]Analysts expect earnings per share of $5.68 on revenues of $3.9 billion for the quarter.

[size=1.125]The AI server maker is expected to report third-quarter revenue in-line with the high-end of its guidance and forecast fourth-quarter revenue which represents a more conservative sequential ramp from the third-quarter.

[size=1.125]Investors will be focusing on the company's market share and its ability to integrate into Nvidia's ([color=var(--sa-link-color)]NVDA) latest offerings.

[size=1.125]"A steep Q/Q growth expectation, >20%, is already baked into SMCI forecasts. With management having seemingly guided both extremely aggressively and very conservatively over the past 18 months," said analysts at Wedbush, noting that it believes SMCI could both lift the bar or stick with current guidance.

[size=1.125]According to [color=var(--sa-link-color)]J.P. Morgan, investors will also focus on the revenue ramp to fiscal fourth-quarter from the third-quarter as GPU supply becomes less constrained; the ability to grow revenue to be $20 billion or more in fiscal 2025; and operating margin leverage and expansion.

[size=1.125]Super Micro's ([color=var(--sa-link-color)]SMCI) shares took a hit when the company [color=var(--sa-link-color)]said it will issue its fiscal third-quarter results on April 30. In recent quarters, Super Micro ([color=var(--sa-link-color)]SMCI) has pre-announced its results, including in January, when it upped its guidance 11 days prior to its earnings call.

[size=1.125]Shares of SMCI have [color=var(--sa-link-color)]surged 804% in the last 12-months, outperforming NVDA's [color=var(--sa-link-color)]gain of 226%, benefitting from its leading position among server makers looking to tap the AI boom.

[size=1.125]Over the last three months, the company has seen significant revisions to its estimates. Both its earnings per share estimates and revenue estimates have been revised upward nine times.

[size=1.125][color=var(--sa-link-color)]Seeking Alpha analysts at large consider SMCI a Hold. This compares with [color=var(--sa-link-color)]average Wall Street rating of Buy and [color=var(--sa-link-color)]SA Quant rating of Strong Buy.

More on Super Micro Computer

• [color=var(--sa-link-color)]Super Micro Computer: Is There Upside Left?
• [color=var(--sa-link-color)]Super Micro Computer Hasn't Found Bottom Yet (Technical Analysis)
• [color=var(--sa-link-color)]Super Micro Computer Stock Plunges - What To Expect From Its Q3 Earnings?
• [color=var(--sa-link-color)]Super Micro results may focus on market share, next-gen Nvidia products: JP Morgan
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liyingrourou

Super Micro Q3 earnings preview: Focus on Q4 ramp, market share
Apr. 29, 2024 11:45 AM ETSuper Micro Computer, Inc. (SMCI) StockNVDABy: Vansh Agarwal, SA News Editor1 Comment
Data center
piranka/E+ via Getty Images

Super Micro Computer (NASDAQ:SMCI) is scheduled to report third-quarter results on Tuesday, April 30th, after market close.

Analysts expect earnings per share of $5.68 on revenues of $3.9 billion for the quarter.

The AI server maker is expected to report third-quarter revenue in-line with the high-end of its guidance and forecast fourth-quarter revenue which represents a more conservative sequential ramp from the third-quarter.

Investors will be focusing on the company's market share and its ability to integrate into Nvidia's (NVDA) latest offerings.

"A steep Q/Q growth expectation, >20%, is already baked into SMCI forecasts. With management having seemingly guided both extremely aggressively and very conservatively over the past 18 months," said analysts at Wedbush, noting that it believes SMCI could both lift the bar or stick with current guidance.

According to J.P. Morgan, investors will also focus on the revenue ramp to fiscal fourth-quarter from the third-quarter as GPU supply becomes less constrained; the ability to grow revenue to be $20 billion or more in fiscal 2025; and operating margin leverage and expansion.

Super Micro's (SMCI) shares took a hit when the company said it will issue its fiscal third-quarter results on April 30. In recent quarters, Super Micro (SMCI) has pre-announced its results, including in January, when it upped its guidance 11 days prior to its earnings call.

Shares of SMCI have surged 804% in the last 12-months, outperforming NVDA's gain of 226%, benefitting from its leading position among server makers looking to tap the AI boom.

Over the last three months, the company has seen significant revisions to its estimates. Both its earnings per share estimates and revenue estimates have been revised upward nine times.

Seeking Alpha analysts at large consider SMCI a Hold. This compares with average Wall Street rating of Buy and SA Quant rating of Strong Buy.

More on Super Micro Computer
Super Micro Computer: Is There Upside Left?
Super Micro Computer Hasn't Found Bottom Yet (Technical Analysis)
Super Micro Computer Stock Plunges - What To Expect From Its Q3 Earnings?
Super Micro results may focus on market share, next-gen Nvidia products: JP Morgan
Super Micro Computer perks up as KeyBanc starts with Sector Weight