Shares of Super Micro Computer (NASDAQ:SMCI) slipped in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2024. Earnings per share came in at $6.65, which beat analysts’ consensus estimate of $5.75 per share. Sales increased by 200.8% year-over-year, with revenue hitting $3.85 billion. However, this missed analysts’ expectations by $50 million.
Looking forward, management now expects revenue and adjusted earnings per share for Q4 2024 to be in the ranges of $5.1 billion to $5.5 billion and $7.62 to $8.42, respectively. For reference, analysts were expecting $4.86 billion in revenue along with an adjusted EPS of $6.96.
Is Super Micro Computer a Good Investment?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SMCI stock based on seven Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 720% rally in its share price over the past year, the average SMCI price target of $965.64 per share implies 11.93% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
