Why Super Micro Computer Shares Popped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Super Micro Computer have popped today by as much as 16% after the company reported strong earnings.
So what: Revenue in the quarter totaled $291.5 million, which resulted in net income of $4.9 million, or $0.11 per share. While the bottom line was shy of the $0.14 per share expectation, the top line was well above the $280 million consensus. On top of that, the company issued strong guidance for the next quarter.
Now what: CEO Charles Liang said the company's rackmount servers and storage products were the big sellers this quarter. Next quarter should see sales in the range of $275 million to $295 million, which should translate into adjusted earnings per share of $0.17 to $0.21. Both of those forecasts top the $270 million in sales and $0.15 per share profit that analysts were expecting.
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The article Why Super Micro Computer Shares Popped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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