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Super Micro Computer... Accelerating Revenue Growth

*Update: This stock alert was made on January 20, 2023. As of May 19,2023, the stock has risen to $171.67 a share.


Mentioned: Super Micro Computer (SMCI)

By: Kevin Evans, StockPicking.com


We are placing an alert on Super Micro Computer, Inc. (SMCI). The stock is trading at $70.86 a share. The stock is growing at a very rapid pace with over 79% Revenue growth year/year, yet only carries a 9.31 PE Ratio. We like profitable companies with accelerating Revenue growth and that's what we have with Super Micro Computer. The PE Ratio is much lower than its peers. The Company beat 1st Quarter earnings on the top and bottom lines by nice margins and then raised guidance for the 2nd Quarter. On January 18th, management raised guidance again for the 2nd Quarter. In the past couple of days the stock has made a significant pullback with the market. We like this opportunity for short and long term gains. We are adding SMCI to our Long Term Portfolio.

SHORT-TERM PRICE TARGET

$79

CATALYST

Upped Guidance for the 2nd Quarter again, Significant pullback from highs, Strong Revenue growth of 79%.

OUR SHORT-TERM TARGET PROBABILITY RATING 1-10

9

RESEARCH NOTES

November 01, 2022 - Super Micro Computer (SMCI) reported 1st Quarter September 2022 earnings of $3.35 per share on revenue of $1.9 billion. The consensus earnings estimate was $3.01 per share on revenue of $1.5 billion. The Earnings Whisper number was $3.20 per share. Revenue grew 79.3% on a year-over-year basis. The company said it expects second quarter non-GAAP earnings of $2.64 to $2.90 per share on revenue of $1.70 billion to $1.80 billion. The current consensus earnings estimate is $2.22 per share on revenue of $1.61 billion for the quarter ending December 31, 2022. The company said it expects fiscal 2023 non-GAAP earnings of $9.00 to $11.30 per share on revenue of $6.50 billion to $7.50 billion. The current consensus earnings estimate is $8.00 per share on revenue of $6.55 billion for the year ending June 30, 2023.

“In Q1 fiscal 2023, our revenue reached a record $1.85 billion dollars, which makes it our 7th consecutive quarter of accelerating YoY growth,” said Charles Liang, Chairman and CEO, Supermicro. “The 79% YoY quarterly growth is about ten times faster than the current industry average. It proves that our Green Computing and Total IT Solutions continue to gain customers’ acceptance and trust. We recognize the opportunities being driven by more demanding compute, storage, telco and AI workloads. Our new generation of products based on optimized system building blocks is the foundation behind our strong, continued growth going forward.”

SUPPORT/RESISTANCE

The stock has a 52 week high of $95.22 and a low of $34.11. Support is around $62 a share.

COMPANY INFO

Super Micro Computer, Inc., together with its subsidiaries, develops and manufactures high-performance server and storage solutions based on modular and open architecture. Its solutions range from complete server, storage, modular blade servers, blades, workstations, full racks, networking devices, server management software, and server sub-systems, as well as security software. The company also provides application-optimized server solutions, including rackmount and blade servers, storage systems, and subsystems and accessories; and server software management solutions, such as Server Management Suite, including Supermicro Server Manager, Supermicro Power Management software, Supermicro Update Manager, SuperCloud Composer, and SuperDoctor 5. In addition, it offers server subsystems and accessories comprising server boards, chassis, power supplies, and other accessories. Further, the company provides server and storage system integration, configuration, and software upgrade and update services; and technical documentation services, as well as identifies service requirements, creates and executes project plans, and conducts verification testing and training services. Additionally, it offers help desk and on-site product support services for its server and storage systems; and customer support services, including ongoing maintenance and technical support for its products. The company provides its products to enterprise data centers, cloud computing, artificial intelligence, and 5G and edge computing markets. It sells its products through direct and indirect sales force, distributors, value-added resellers, system integrators, and original equipment manufacturers. The company primarily operates in the United States, Europe, Asia, and internationally. Super Micro Computer, Inc. was incorporated in 1993 and is headquartered in San Jose, California.

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