Server maker Supermicro’s stock soars on crushed earnings results and soaring profits
Data center server maker Super Micro Computer Inc. seems to be back in Wall Street’s good graces after delivering an impressive earnings beat in its fourth quarter reported today.
The company surprisingly missed expectations on revenue, but the big beat on its bottom line, combined with strong guidance for the current quarter, helped its stock gain more than 7% in extended trading.
Supermicro reported adjusted earnings of $1.70 per share, smashing Wall Street’s target of just 92 cents per share. Revenue for the period came to $11.1 billion, up 91%, but it wasn’t enough to beat the Street’s consensus estimate of $11.6 billion. Nonetheless, it also reported a big jump in profitability, ending the quarter with net income of $1.18 billion, up from $483 million in the prior quarter and $195 million in the same period one year ago.
Investors were also sold on the company’s growing order backlog. Chief Executive Charles Liang (pictured) revealed that the company booked more than $60 billion worth of new orders over the past year. “Our total AI/IT solutions strategy continues to deliver results, we added several hundred enterprise and other customers in the past year,” he told analysts.
