May 1st, 2024 - $Super Micro Computer (SMCI.US)$'s shares dropped by 10.21% to reach $771.090 in pre-market trading on Wednesday. After the market close on Tuesday, Super Micro Computer reported its fiscal third-quarter 2024 earnings that slightly missed expectations, alongside a guidance for the fourth fiscal quarter that surpassed estimates.

Highlights for Q3 2024 Financial Performance

• Net sales is $3.85 billion, an increase of 200% compared with the same quarter of last year. However, it falls below analysts' expectations of $3.95 billion.

• Gross margin of 15.5% versus 15.4% in the second quarter of fiscal year 2024 and 17.6% in the same quarter of last year.

• Net income of $402 million versus $296 million in the second quarter of fiscal year 2024 and $86 million in the same quarter of last year.

• Diluted net income per common share of $6.56 versus $5.10 in the second quarter of fiscal year 2024 and $1.53 in the same quarter of last year.

• Non-GAAP diluted net income per common share of $6.65 versus $5.59 in the second quarter of fiscal year 2024 and $1.63 in the same quarter of last year.

• Cash flow used in operations for the third quarter of fiscal year 2024 of $1,520 million and capital expenditures of $93 million.

Financial Outlook

Super Micro Computer expects net sales of $5.1 billion to $5.5 billion for the fourth quarter of fiscal year 2024, higher than analysts' expectations of $4.73 billion. The Non-GAAP net income per diluted share is expected to be $7.62 to $8.42. Also, the Company is raising its guidance for revenues from a range of $14.3 billion to $14.7 billion to a range of $14.7 billion to $15.1 billion and establishing guidance for non-GAAP net income per diluted share of $23.29 to $24.09.