Shares of Super Micro Computer (SMCI 32.04%) were up by a remarkable 32% as of 12:15 p.m. ET Friday, according to data from S&P Global Market Intelligence.
After the market closed Thursday, the high-performance server and data storage maker published preliminary results for the second quarter of its fiscal 2024 — which ended Dec. 31. The company dramatically increased its performance targets with the update, and investors are responding by aggressively buying its shares.
Q4 results will blow the doors off expectations
Demand for Super Micro Computer’s storage and server solutions is surging in conjunction with the rise of artificial intelligence and other high-performance-computing applications. Management’s updated forecast for revenue, earnings per share, and non-GAAP (adjusted) earnings per share has provided a lot for investors to be excited about.
| Metric | Previous Guidance Range | Updated Guidance Range |
|---|---|---|
| Revenue | $2.7 billion to $2.9 billion | $3.6 billion to $3.65 billion |
| Earnings per share | $3.75 to $4.24 | $4.90 to $5.05 |
| Adjusted earnings per share | $4.40 to $4.88 | $5.40 to $5.55 |
Table by author; Source: Super Micro Computer.
Performance beats on the level that Super Micro is targeting are rare. With that in mind, it’s not surprising that the company’s share price is shooting through the roof Friday.
What comes next for Super Micro Computer?
Super Micro Computer is scheduled to release its fiscal Q2 earnings and host a conference call after the market closes on Jan. 29. While the company has already released preliminary numbers, there could still be some big moves for the stock depending on whether the company’s performance comes in toward the top or the bottom of its new guidance ranges.
Additionally, investors will be eager to see what kind of guidance the company provides for its fiscal Q3. Demand appears to be accelerating rapidly, and it’s possible that the company will deliver additional guidance that helps power continued bullish momentum.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Super Micro Computer. The Motley Fool has a disclosure policy.
