Super Micro Computer Hits Estimates, But Results Lag Last Year's

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Super Micro Computer (NAS: SMCI) reported earnings on Jan. 24. Here are the numbers you need to know.

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.

Revenue details
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.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
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.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

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At the time this article was published 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 ofMotley 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.

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