Copyright Barchart
San Jose, California-based Super Micro Computer, Inc. (SMCI) develops and manufactures high-performance server and storage solutions based on modular and open architecture. With a market cap of $30.6 billion, Super Micro’s operations span the United States, Europe, Asia, and internationally. The tech major is gearing up to announce its first-quarter results after the markets close on Tuesday, Nov. 4. Ahead of the event, analysts expect SMCI to report an adjusted EPS of $0.32, down a staggering 52.2% from $0.67 reported in the year-ago quarter. While SMCI has missed Street’s bottom-line projections twice over the past three quarters, it has surpassed the estimates on one other occasion. For the full fiscal 2026, its adjusted EPS is expected to come in at $2.19, up a notable 27.3% from $1.72 reported in fiscal 2025. While in fiscal 2027, its earnings are expected to surge 36.5% year-over-year to $2.99 per share. SMCI stock prices have gained 9.7% over the past 52 weeks, notably underperforming the Technology Select Sector SPDR Fund’s (XLK) 31.2% surge and the S&P 500 Index’s ($SPX) 18.3% returns during the same time frame. SMCI stock has been on a rollercoaster ride since last year, after its corporate governance failures and accounting manipulation came into light. Its stock prices plunged more than 18% in a single trading session following the release of its Q4 results on Aug. 5. Its net sales for the quarter increased by a notable 7.5% year-over-year to $5.8 billion, but missed the Street’s expectations by 3.8%. Further, its gross margins have continued to shrink in recent quarters, leading to a 26.2% year-over-year decline in adjusted net income to $260.7 million, missing the consensus estimates by a large margin. Analysts remain cautious about the stock’s prospects. SMCI has a consensus “Hold” rating overall. Of the 19 analysts covering the stock, opinions include four “Strong Buys,” three “Moderate Buys,” nine “Holds,” one “Moderate Buy,” and two “Strong Sells.” As of writing, the stock is trading above its mean price target of $48.64.
