Super Micro Computer (NASDAQ:SMCI) gained in pre-market trading after the information technology company announced its second-quarter results. The company reported adjusted diluted net earnings of $5.59 per common share in Q2 compared to $3.26 in the same period last year, exceeding consensus estimates of $5.05 per share.
It also posted net sales of $3.66 billion, equating to a growth rate of more than 100% year-over-year. This beat consensus estimates by $400 million.
In the third quarter of FY24, SMCI expects net sales in the range of $3.7 billion to $4.1 billion and adjusted earnings between $5.20 and $6.01 per share. For FY24, Super Micro raised its revenue guidance to between $14.3 billion and $14.7 billion from its prior estimate of $10 billion to $11 billion.
Is SMCI a Good Stock to Buy?
Analysts remain cautiously optimistic about SMCI stock with a Moderate Buy consensus rating based on four Buys and one Hold and Sell each. SMCI stock has skyrocketed by more than 500% over the past year and the average SMCI price target of $416.83 implies a downside potential of 15.9% at current levels.
