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Supermicro to report Q4 earnings after shares surged on outlook
The company last month raised expected margins to 15% to 17% from prior guidance around 8.3%, and it is expected to post Q4 adjusted EPS of $1.33 on $11.2 billion in revenue.
Supermicro is set to report fourth-quarter results after the bell today, putting fresh numbers on its AI infrastructure push following a preliminary update that sent shares up more than 20% late last month, according to Yahoo Finance. The update included a marked improvement in expected profitability, with the company saying fourth-quarter margins should land between 15% and 17%, compared with earlier guidance of 8.2% to 8.4%.
Supermicro also cited demand in its filing, saying it had generated new fourth-quarter orders of more than $60 billion. Analyst consensus estimates compiled by Bloomberg call for adjusted earnings per share of $1.33 on revenue of $11.2 billion for the quarter, compared with adjusted EPS of $0.41 and revenue of $5.7 billion a year earlier, Yahoo Finance reported.
The company has been working to scale AI-related infrastructure, including plans described by CEO Charles Liang to co-build a gigawatt-scale data center for SpaceX and xAI within a year, as referenced by Yahoo Finance. Supermicro also announced in June it was raising as much as $7 billion in equity-linked financing to help fund its AI build-out.
Despite the run-up after the preliminary update, Yahoo Finance said Supermicro stock has still lagged some peers over the past year, down about 30% versus HPE up roughly 160% and Dell Technologies up more than 230%. The report also noted the company has faced regulatory scrutiny, including an independent investigation launched in April after the US Department of Justice indicted co-founder Yih-Shyan Liaw and two others over alleged violations of US export controls.