Super Micro Computer
The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Super Micro Computer beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Super Micro Computer logged revenue of $291.5 million. The five analysts polled by S&P Capital IQ anticipated a top line of $280.1 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $249.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.18. The five earnings estimates compiled by S&P Capital IQ predicted $0.14 per share. GAAP EPS of $0.11 for Q2 were 45% lower than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.8%, 330 basis points worse than the prior-year quarter. Operating margin was 2.6%, 290 basis points worse than the prior-year quarter. Net margin was 1.7%, 180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $269.8 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.12 billion. The average EPS estimate is $0.59.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 200 members out of 216 rating the stock outperform, and 16 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 51 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 $12.90.
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