Super Micro Computer Inc., a server company with a focus on artificial intelligence (AI) sales, experienced a decline in its shares during the extended session on Tuesday. Despite an anticipated surge in spending to support AI technology, the company provided a weak outlook.
Share Performance
After the regular session closed at $347.40 with a 1.7% decline, Super Micro's shares (SMCI, -1.67%) fell as much as 14% in after-hours trading.
Year to date, Super Micro shares have soared by an impressive 323%. In comparison, Nvidia Corp. shares (NVDA, -1.66%) have increased by more than 200% during the same period. The PHLX Semiconductor Index (SOX) has demonstrated a growth of over 45%, while the S&P 500 (SPX) has risen by more than 17%.
Q1 Expectations
For the first quarter, Super Micro estimates adjusted earnings to be between $2.75 and $3.50 per share, with revenue ranging from $1.9 billion to $2.2 billion. However, Wall Street analysts project higher earnings of $3.21 per share on revenue of $2.2 billion.
Full-Year Outlook
Super Micro expects its revenue for the year to amount to approximately $9.5 billion to $10.5 billion, falling slightly short of analysts' expectations of $9.88 billion.
Q4 Results
In the fourth quarter, Super Micro reported a net income of $193.6 million, or $3.43 per share, compared to $140.8 million, or $2.60 per share, in the same period the previous year.
Adjusted earnings, which do not include expenses such as stock-based compensation, reached $3.51 per share, significantly higher than the $1.63 per share reported in the year-ago period. Additionally, revenue rose to $2.18 billion from $1.64 billion in the fourth quarter of the previous year.
Analysts surveyed by FactSet had projected earnings of $2.91 per share on revenue of $1.98 billion.
Super Micro's shares rallied last quarter when the company's optimistic AI forecast exceeded expectations.
