Super Micro Computer Updates Q1 2025 Earnings Guidance

On Tuesday morning, Super Micro Computer (NASDAQ:SMCI) announced an update to its earnings guidance for the first quarter of 2025. The company has set its earnings per share (EPS) projection in the range of 0.750 to 0.760. This guidance aligns with the consensus EPS estimate, which stands at 0.750. Additionally, Super Micro provided a revenue forecast of between $5.9 billion and $6.0 billion, which is lower than the consensus estimate of $6.5 billion.

Super Micro Computer Stock Performance

On the day of the announcement, Super Micro Computer's shares increased by $1.67, bringing the stock price to $27.70. A total of 100,123,492 shares changed hands, which is significantly higher than its average trading volume of 80,718,117 shares. Over the past year, Super Micro Computer's stock reached a low of $23.90 and a high of $122.90. The company currently has a market capitalization of $15.49 billion and a price-to-earnings (PE) ratio of 13.91, with a beta of 1.28. The stock's fifty-day moving average price is $43.93, while the 200-day moving average price is $66.15. Financially, Super Micro holds a quick ratio of 1.93, a current ratio of 3.77, and a debt-to-equity ratio of 0.32.

Last Quarterly Earnings

Super Micro Computer disclosed its last quarterly earnings on August 6th, reporting an EPS of $0.62. This figure fell short of analysts’ consensus estimates of $0.76 by $0.14. The company's net margin was recorded at 8.09%, and it achieved a return on equity of 30.57%. In this quarter, Super Micro generated revenue of $5.31 billion, which was slightly below the analysts’ expectations of $5.32 billion. Compared to the same period in the previous year, the company demonstrated a significant revenue increase of 142.9%, with earnings of $0.34 EPS in the prior year.

Wall Street Analysts' Insight

Following the earnings guidance revision, several financial analysts issued their reports on Super Micro Computer shares. Argus downgraded its stance on the stock from a "buy" to a "hold" rating. Meanwhile, Wedbush maintained a "neutral" rating but slashed the price target to $32.00 from $62.00. Barclays also lowered its forecast for Super Micro Computer's share price from $438.00 to $42.00 while keeping an "equal weight" rating. Additionally, Nomura Securities downgraded the stock from a "strong-buy" to a "hold" status. Wells Fargo also reduced their target price from $65.00 to $37.50, maintaining an "equal weight" rating. Currently, the stock has two sell ratings, twelve hold ratings, and four buy ratings, leading to an overall consensus of "Hold" with an average price target of $71.33 according to MarketBeat data.

About Super Micro Computer

Super Micro Computer, Inc., along with its subsidiaries, specializes in the development and manufacture of high-performance server and storage solutions based on a modular and open architecture. The company operates both in the United States and internationally, providing a wide range of products such as complete server and storage systems, modular blade servers, workstations, networking devices, server sub-systems, and server management software.

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