Super Micro Computer (SMCI.US) is up nearly 5% today after releasing preliminary financial data for Q2 of the fiscal year 2024/25 and presenting its outlook for the upcoming year. Despite weaker Q2 results, the company’s strong projections for 2026, significantly exceeding previous analyst estimates, and its assurance of meeting key financial reporting deadlines pushed the stock up by over 13% at its peak today.
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Create account Try a demo Download mobile app Download mobile appSince the beginning of February, SMCI stock has surged by over 50%, breaking out of the downward trend that had persisted since July. Source: xStation
The company estimates that in Q2 24/25, it achieved revenue of $5.6-5.7 billion, compared to the previous forecast range of $5.5-6.1 billion. Analysts had expected $5.81 billion. The estimated adjusted EPS for the quarter is $0.58-0.60 (versus the previous range of $0.56-0.65 and analyst consensus of $0.64).
Apart from weaker Q2 estimates, the company also lowered its expectations for Q3 24/25, forecasting revenue between $5-6 billion. As a result, it reduced its full-year fiscal 2025 revenue forecast to $23.5-25 billion (previously: $26-30 billion).
Despite these reductions, the company expects aggressive revenue growth in fiscal 2026, forecasting $40 billion, nearly $10 billion higher than analyst consensus estimates. This growth is expected to be driven by the integration of DLC technology, which is projected to be adopted by around 30% of new data centers within the next 12 months.
Source: Bloomberg Finance L.P.
Another key issue investors focused on regarding SMCI was the completion of key financial reports. Delays in report releases pose a potential delisting risk for the stock. In October, E&Y, SMCI’s previous auditor, resigned due to concerns over the company’s transparency and clarity in financial reporting. Additionally, Hindenburg Research has raised concerns about accounting irregularities.
However, both risks appear to be diminishing. The Nasdaq exchange has extended the deadline for submitting missing financial reports to February 25, and SMCI has assured that it will meet this deadline. Notably, the last official report presented by the company was released on August 6, 2024, covering Q4 23/24.
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