What: Shares of Super Micro Computer (OTC:SMCI) were up 24.5% as of 11:45 a.m. ET Tuesday after the server specialist announced impressive preliminary fiscal second-quarter 2016 results.
So what: As it stands, Super Micro Computer now expects net sales for the quarter to be in the range of $637 million to $639 million, significantly higher than previous guidance for revenue of $580 million to $630 million. Super Micro also expects adjusted earnings per diluted share of $0.69 to $0.72, also well above guidance for $0.54 to $0.64.
Analysts, on average, were anticipating earnings of $0.60 per share on revenue of $600.1 million.
Now what: Super Micro Computer didn't offer specifics on what drove this relative strength, but promised more details when it releases official quarterly results later this month. In the meantime, however, with shares now trading at an attractive 14.3 times trailing-12-month earnings and just 10.2 times next fiscal year's estimates, I can't blame investors for so aggressively bidding up Super Micro Computer stock today.