Supermicro to report Q4 results in latest test for AI infrastructure company

Supermicro (SMCI) will report fourth-quarter earnings Tuesday after providing a preliminary update that lifted shares over 20%, with margins forecast between 15% and 17% versus prior guidance of 8.2% to 8.4% and new orders exceeding $60 billion. Analysts expect adjusted EPS of $1.33 on revenue of $11.2 billion, compared with $0.41 and $5.7 billion a year earlier. The company faces regulatory scrutiny after the Department of Justice indicted cofounder Yih-Shyan Liaw for alleged export control violations, though Supermicro was not named as a defendant.

Supermicro SMCI https://finance.yahoo.com/quote/SMCI/ will report its fourth quarter earnings after the bell on Tuesday, after the company provided a preliminary business update late last month that sent shares soaring more than 20%. According to Supermicro's filing, margins will be between 15% and 17%, versus prior guidance of 8.2% to 8.4%. The company also said it saw new fourth quarter orders of more than $60 billion. In June, CEO Charles Liang wrote on X that the company planned to co-build a gigawatt-scale data center for SpaceX and xAI within a year. For the fourth quarter, Supermicro is expected to report adjusted earnings per share EPS of $1.33 on revenue of $11.2 billion, according to Bloomberg analyst consensus estimates. The company saw EPS of $0.41 and revenue of $5.7 billion in the same period last year. Gross margins are anticipated to top out at 15.8%, up 9.6% year over year. Despite the bump from its preliminary announcement, Supermicro stock has underperformed rival AI infrastructure companies. Shares are down some 30% over the last 12 months versus HPE HPE https://finance.yahoo.com/quote/HPE/ , which is up roughly 160% and Dell Technologies DELL https://finance.yahoo.com/quote/DELL/ , which has soared more than 230% in the same period. In June, the company announced it was raising as much as $7 billion in equity-linked financing to help pay for its AI buildout. Supermicro has also been dealing with regulatory issues. In April, the company launched an independent investigation after the Department of Justice indicted cofounder Yih-Shyan Liaw, and two others for allegedly violating US export controls. Supermicro was not named as a defendant in the case. Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at @DanielHowley . Click here for the latest technology news that will impact the stock market . Read the latest financial and business news from Yahoo Finance