Super Micro Preliminary Q1 Revenue Tops Guidance by $4 Billion; Wedbush Calls Results a "Clear Positive"

Super Micro Computer (SMCI) shares drew analyst praise after the AI server maker's preliminary first-quarter results showed revenue well above its prior guidance, prompting Wedbush to label the report a "clear positive." The company expects revenue of $18.5 billion to $19.5 billion, versus earlier guidance of $14.5 billion to $15.5 billion, with gross margins of 12% to 12.5%, up from a prior 10.4% to 10.8% range. Wedbush analyst Matt Bryson said the preliminary figures showed revenue exceeding prior guidance by roughly $4 billion with margins above the guided range. Full results are slated for release on Nov. 3. The outlook follows a mixed fiscal fourth quarter, when net sales rose 91.4% year over year to $11.1 billion but missed estimates by about $450 million, while earnings of $1.70 per share beat the $0.92 consensus. Management guided first-quarter EPS of $1.01 to $1.10, below the $1.25 consensus. SMCI carries a consensus "Hold" rating and a mean price target of $43.19, implying 28.1% upside. The stock has a market value of $23.4 billion and is up 14% year to date.