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

Seth Jayson, The Motley Fool
Updated

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 thisarticle 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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