Super Micro Computer
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Super Micro Computer met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and earnings per share shrank significantly.
Gross margins expanded, operating margins contracted, and net margins dropped.
Super Micro Computer logged revenue of $250 million. The three analysts polled by S&P Capital IQ predicted revenue of $250 million. Sales were 3.8% higher than the prior-year quarter's $241 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.25. The three earnings estimates compiled by S&P Capital IQ predicted $0.25 per share on the same basis. GAAP EPS of $0.20 for Q2 were 27% lower than the prior-year quarter's $0.27 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 17.1%, 40 basis points better than the prior-year quarter. Operating margin was 5.5%, 150 basis points worse than the prior-year quarter. Net margin was 3.5%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $249 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $1.0 billion. The average EPS estimate is $1.02.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 203 members out of 219 rating the stock outperform, and 16 members rating it underperform. Among 60 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 58 give Super Micro Computer a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Super Micro Computer is outperform, with an average price target of $17.90.
Looking to profit from the makers of computer hardware? You may be missing something obvious about where the money will be made in the tech industry of the future. Is Super Micro Computer on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Super Micro Computer to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.