Super Micro Computer is due to report fiscal first-quarter results after the market closes Tuesday. Investors will be looking for confirmation of figures the AI server maker announced two weeks ago, particularly a sharp increase in revenue and stronger gross margins.
On October 20, the company said revenue for the quarter ended September 30 was expected to reach $18.5 billion to $19.5 billion, above its previous forecast of $14.5 billion to $15.5 billion. It also projected gross margins of 12.0% to 12.5%, compared with its earlier range of 10.4% to 10.8%. Management attributed the results to stronger demand for AI platforms and a favorable mix of customers and products.
The projected revenue would be well above the $11.12 billion reported in the prior quarter. Investors will also assess whether the expected margin improvement can be sustained, rather than reflecting a temporary shift in product and customer mix.
Backlog is another focus. Super Micro reported more than $60 billion in orders last quarter, and analysts are watching for updates on the rollout of next-generation AI systems, including platforms using newer GPU architectures. Rosenblatt analyst Sajal Dogra cited the September-quarter forecast increase and a future Vera Rubin volume ramp when raising the firm’s full-year estimates.
Investors are also seeking updates on ongoing export-control investigations. The earnings call will be the first under new CFO Mark Long, whose guidance is expected to draw close attention.
Analyst estimates have risen in recent weeks: earnings-per-share forecasts are up 19% over the past 60 days, while revenue estimates have increased 8.6%. The stock was recently at $30.44, against a mean analyst price target of $43.27. The company reported $1.70 in earnings per share in the prior quarter, beating the $0.71 consensus, while revenue of $11.12 billion came in slightly below expectations.
Sources: Investing.com News.