SMCI misses Q4 earnings, tops revenue guidance estimates

Super Micro Computer (SMCI) missed its fiscal fourth quarter 2024 earnings estimates, falling shy of revenue forecasts ($5.31 billion versus expectations for $5.32 billion) and its adjusted earnings per share missing the mark ($6.25 per share versus expectations for $8.25 per share).

Initially, SMCI shares were climbing higher in extended hours after beating first quarter 2025 and full-year 2025 guidance estimates. But the stock has since reversed course and has fallen by as much as 13%. This article was updated to reflect the downward movement Super Micro stock has taken since the video's initial posting.

Market Domination anchors Julie Hyman and Josh Lipton discuss the hardware company's report in the video above.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

Video Transcript

Super micro computer reporting its fiscal fourth quarter results.

Let's get those numbers, Julie Q four just eps 625 versus expectation of 825.

So that's a miss net sales 5.31 billion.

The expectations was 5.32 billion.

So Miss is there on the top and bottom?

And now let's go to the guidance looking ahead Q one net sales, they see 6 to 7 billion uh versus expectation of close to 5.5 billion.

And for 2025 net sales 26 to 30 billion is what they're looking for.

The expectations was 23.6 billion and they do authorize a 10 for one forward split.

You can see that stock, we're up about 12% in the after round.

Yeah, it's a little bit confusing here to see such a magnitude of a miss for last quarter.

But then the company is very confident uh for this current year.

Um I noticed that they do not give guidance on earnings right.

As far as I can tell, they give guidance on revenue.

So that's what I'm saying.

Yeah, so I, I don't know how that fits into the equation if you will.

But you know S MC I remember Super Micro makes the cooling systems that go into the data centers that we know are going gangbusters right now.

Um And this is a name that is also closely tied to the fortunes of NVIDIA because it's Nvidia's chips that go into the servers that are using the various cooling systems.

So um could this be seen as a forward indicator for NVIDIA as well perhaps?

But just to clarify here where we are in the fiscal year for Super Micro, they just reported their fourth quarter, their fiscal fourth quarter.

Now they're in their fiscal 2025.

So currently in their first quarter and it's that for that full year 2025 that they are feeling very optimistic on the sales front.

Yeah, which is interesting because, you know, investors certainly had plenty of questions on this name.

Julia.

They, it's a question about A I demand and A I server margins.

They have competition from big names you think of Dell.

On the other hand, you know, there are bulls including I I know like the team of JP Morgan really like this name and they'll point to, you know, strong Capex backdrop, but we just heard from all the cloud cloud giants, they're spending and spending and spending and bulls will say, you know, they like this company's product portfolio and at least initially in your after hours, what a move for super micro.