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SMCI Stock Soars on Record Order Growth
21 Jul
Summary
- Super Micro's backlog reached record levels, exceeding $60 billion in new orders.
- Fourth-quarter revenue is expected near the lower end of prior guidance.
- Gross margins are projected to significantly increase to 15%-17%.
Super Micro Computer (SMCI) saw its stock price climb significantly following the announcement of record-breaking order growth. The company reported that its backlog expanded to unprecedented levels, having secured over $60 billion in new orders during its fiscal fourth quarter. These substantial orders are slated for delivery in subsequent fiscal periods.
The company anticipates its fourth-quarter revenue will fall near the lower boundary of its previously issued guidance, which ranged from $11 billion to $12.5 billion. However, Super Micro provided a more optimistic outlook for its gross margins, now expected to be between 15% and 17%. This represents a considerable increase from the earlier projection of 8.2% to 8.4%, a rise attributed to a beneficial customer and product assortment.
Super Micro is scheduled to release its fourth-quarter earnings report on August 11. Following the news, Super Micro shares surged by approximately 16.99% in after-hours trading, reaching $29.83 at the time of the report.
