Super Micro Computer misses earnings estimates, announces 10-for-1 stock split

Super Micro Computer (SMCI) reported quarterly earnings on Tuesday that fell short of analysts’ expectations, sending shares lower in extended trading. The company also announced a 10-for-1 stock split.

The company’s quarterly revenue more than doubled from a year earlier to $5.31 billion, slightly above analysts’ expectations, but margins fell as costs rose, dragging down profits. Net income of $353 million, or $5.51 per share, jumped from a year earlier but missed analysts’ forecasts.

Record demand for new AI infrastructure

Super Micro Computer CEO Charles Liang said the company has benefited from “record” demand for artificial intelligence infrastructure.

The CEO added that the company could be “well positioned to become the largest IT infrastructure company, driven by our technology leadership, including rack-scale DLC liquid cooling and the business values ​​of our new data center building block solutions.”

Super Micro Computer said it expects revenue to be in the range of $6 billion to $7 billion for the first quarter of fiscal 2025, while its full-year sales forecast is in the range of $26 billion to $30 billion, above analysts’ projections.

The company also announced a 10-for-1 forward split, with split-adjusted trading to begin October 1.

Shares of Super Micro Computer were down more than 12% at $540.02 in extended trading as of 6:50 p.m. ET Tuesday after the company reported results.