What You Need To Know Ahead of Super Micro Computer's Earnings Report
Key Takeaways
Super Micro Computer is reporting fiscal fourth-quarter earnings after the bell on Tuesday.
Analysts expect the server maker's revenue and earnings to grow from the year-ago period.
Investors will likely be watching for strong first-quarter guidance, reflecting demand for artificial intelligence (AI) tech, to kick off the company's fiscal 2025.
The company also could provide investors with updates on its partnership with Nvidia and the impact of Nvidia's delayed the Blackwell AI chip.
Super Micro Computer (SMCI) is set to report fourth-quarter earnings for its fiscal 2024 after the bell Tuesday, with investors likely watching for strong quarterly guidance that suggests strong artificial intelligence (AI) demand as well as awaiting updates on the server maker's partnership with Nvidia (NVDA).
The company's revenue is projected to be $5.29 billion, according to estimates compiled by Visible Alpha. Net income is expected to come in at nearly $489 million, or $7.54 per share, positioning revenue and profit higher than both Super Micro's prior quarter and the year-ago period.
Analyst Estimates for Q4 2024
Q3 2024
Q4 2023
Revenue
$5.29 billion
$3.85 billion
$2.18 billion
Diluted Earning Per Share
$7.54
$6.56
$3.43
Net Income
$488.98 million
$402.46 million
$193.6 million
Key Metrics: Guidance Reflecting AI Demand
Investors will likely be watching for the server maker to issue sales guidance for the current first quarter that indicates strong demand for its AI technology at the start of its fiscal 2025 year.
Analysts expect Super Micro to guide toward $5.37 billion in first-quarter sales, while full-year guidance is projected to be $23.83 billion, according to estimates compiled by Visible Alpha.
J.P. Morgan analysts said they expect Super Micro to report better-than-consensus guidance for the first quarter of its fiscal 2025, "to assure investors around AI-led demand." They expect the full-year outlook to be in line with consensus, however, as Super Micro likely "chooses to remain conservative till it gets further visibility."
Business Spotlight: Nvidia Partnership Update Amid Reports of Delay
Super Micro Computer is an Nvidia partner, and makes AI-based servers for the chip maker. The company could give investors some reassurance when it reports Tuesday that demand for its AI servers remains strong, especially as Nvidia's launch of Blackwell, its next-generation chips, has reportedly been delayed.
Super Micro shares were down 3% at $608.830 Monday afternoon, paring steep earlier losses above 10%. The stock has more than doubled year-to-date, although it is off peaks hit in March.
** Current off Market Price: $623.99
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