Super Micro Computer (NASDAQ:SMCI) shares higher after exceeding the analysts estimates in Q1.
Sales jumped 79% Y/Y, above the company’s guidance range of $1.52B to $1.62B, with growth rate at about 10 times greater than the overall IT industry.
In Q1, U.S. sales grew 131% Y/Y, representing 70% of revenues.
Asia represented 14% of revenues, Europe 13%, and Rest of World 3%.
Non-GAAP earnings per share grew over 490% Y/Y to $3.42, well above the high end of company’s guidance range of $2.07 to $2.32.
Non-GAAP gross margin rate up 120 bps Y/Y to 18.8%.
CEO comment: “Looking ahead, I anticipate fiscal year 2024 revenue may reach the range of $8 billion to $10 billion considering the current economic headwind may last for many quarters. As we continue to gain IT market share with the best rack-scale Plug-and-Play IT Total Solutions, I believe we will soon become a $20 billion revenue company. Our business model has been optimized, our engineering teams are fully ready, and our worldwide campus production capacity and efficiency are now second to none.”
The company sees 2Q23 EPS of $2.64-$2.90, versus the consensus of $2.36 and revenue of $1.7B-1.8B, versus the consensus of $1.64B; Gross margins to be down 75 basis points to 100 basis points; CapEx to be in the range of $7M to $10M.
For FY2023, EPS to be in the range of $9.00-$11.30, versus the consensus of $7.94 and revenue of $6.5B-7.5B, versus the consensus of $6.55B.
CFO comment: “As we look ahead to the rest of fiscal 2023, we expect that our improved profitability together with good working capital management will lead to operating cash flow in line with net income. We remain confident in our long-term outlook for robust revenue growth and profitability driven by our leading-edge new platforms, design wins, market share gains and engagement with significant new global customers.”
The company have $200M in share repurchase authorization until January 31, 2024.
On YTD basis, stock gained around 84%.
A quick look at bullish analysis on the stock here.
Image and article originally from seekingalpha.com. Read the original article here.