Super Micro Computer, Inc. (SMCI) Earnings Guidance Surprises to the Upside


Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) are up over 25% in early morning trading after the company surprised investors with their Q2 Earnings Guidance numbers.

Super Micro Computer, Inc. (NASDAQ:SMCI) released their updated earnings guidance which sees EPS coming in at between $0.69 and $0.72 per share for Q2. This is quite a bit higher than what The Street has estimated, as they had EPS coming in at just $0.59 per share. The company also reported revenue guidance of between $637 and $639 million, which also comes in much higher than Wall Streets $600.1 million estimate.

The stock is up 26.58% or $5.72 following the news, hitting $27.24 per share. About 501,664 shares traded hands or up 2.79% from the average. SMCI has declined 35.84% since June 8, 2015 and is currently downtrending. It has underperformed the S&P500 by 29.98%.

From a total of 6 analysts covering Super Micro Computer (NASDAQ:SMCI) stock, 5 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 83% of the ratings are positive. The highest target price is $47 while the lowest target price is $36. The mean of all analyst targets is $41.50 which is 52.35% above today’s ($27.24) stock price. Super Micro Computer was the topic of 10 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. Susquehanna downgraded shares on November 11 to a “Neutral” rating. Stifel Nicolaus maintained SMCI stock in a recent report from October 9 with a “Buy” rating.

The institutional sentiment decreased to 1.17 in Q2 2015. It’s down 0.13, from 1.3 in 2015Q2. The ratio dropped, as 37 funds sold all their Super Micro Computer, Inc. shares they owned while 50 reduced their positions. 17 funds bought stakes while 85 increased their total positions. Institutions now own 33.05 million shares which is 1.91% less than the previous share count of 33.69 million in 2015Q2.

Needham Investment Management Llc holds 4.4% of its total portfolio in Super Micro Computer, Inc., equating to 645,250 shares. Tieton Capital Management Llc owns 142,830 shares representing 3.63% of their total US portfolio. Moreover, Neumeier Poma Investment Counsel Llc has 3.09% of their total portfolio invested in the company, equating to 598,805 shares. The Connecticut-based Fairfield Bush & Co. has a total of 2.68% of their portfolio invested in the stock. Irving Magee Investment Management, a Pennsylvania-based fund reported 167,775 shares owned.

Since February 25, 2015, the stock had 0 buys, and 4 selling transactions for a total of $5.12 million in net activity. Chou Cheng-Hsien Phidias sold 4,000 shares worth $107,786. Liu Liang Chiu-Chu Sara sold 97,735 shares worth $2.49 million. Liang Charles sold 97,735 shares worth $2.49M. Black Laura A. sold 18,000 shares worth $603,623. The insider Tsai Hwei-Ming Fred sold 10,000 shares worth $331,920.

Super Micro Computer, Inc. offers server technology. The company has a market cap of $1.30 billion. The Firm develops and provides end-to-end green computing solutions to the data center, cloud computing, enterprise information technology information technology , big data, high performance computing (HPC) and embedded markets. It has 14.87 P/E ratio. The Company’s solutions range from server, storage, blade and workstations to full racks, networking devices, server management software and technology support and services.