Q1 EPS Forecast for Super Micro Computer Boosted by Analyst

Key Points

• Northland Securities raised its Q1 2027 EPS forecast for Super Micro Computer to $1.55 from $0.94, while projecting full-year 2027 EPS of $5.38 and 2028 EPS of $6.85.
• Super Micro recently reported $1.70 quarterly EPS, beating the $0.92 consensus estimate, while revenue rose 93.2% year over year to $11.12 billion but fell short of expectations.
• Despite bullish earnings projections, analyst sentiment remains cautious, with the stock carrying a consensus “Hold” rating and an average price target of $43.07; shares opened at $33.72 and insiders recently sold shares under pre-arranged trading plans.

Super Micro Computer, Inc. (NASDAQ:SMCI - Free Report) - Stock analysts at Northland Securities upped their Q1 2027 EPS estimates for Super Micro Computer in a research report issued to clients and investors on Wednesday, October 21st. Northland Securities analyst N. Chokshi now anticipates that the company will earn $1.55 per share for the quarter, up from their previous forecast of $0.94. The consensus estimate for Super Micro Computer's current full-year earnings is $3.94 per share. Northland Securities also issued estimates for Super Micro Computer's Q2 2027 earnings at $1.31 EPS, Q3 2027 earnings at $1.29 EPS, Q4 2027 earnings at $1.23 EPS, FY2027 earnings at $5.38 EPS, Q1 2028 earnings at $2.00 EPS, Q2 2028 earnings at $1.66 EPS, Q3 2028 earnings at $1.63 EPS, Q4 2028 earnings at $1.56 EPS and FY2028 earnings at $6.85 EPS.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, beating analysts' consensus estimates of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same quarter last year, the firm earned $0.31 earnings per share. The firm's revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS.

A number of other brokerages have also weighed in on SMCI. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Super Micro Computer in a report on Monday, September 21st. Needham & Company LLC reissued a "buy" rating and issued a $46.00 target price on shares of Super Micro Computer in a report on Wednesday, August 12th. Stifel Nicolaus set a $42.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Raymond James Financial reaffirmed an "outperform" rating and set a $48.00 price target on shares of Super Micro Computer in a research note on Wednesday, August 12th. Finally, Sanford C. Bernstein set a $42.00 price target on shares of Super Micro Computer in a report on Thursday, August 13th. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, Super Micro Computer currently has an average rating of "Hold" and an average price target of $43.07.

Super Micro Computer Stock Down 5.2%

SMCI opened at $33.72 on Friday. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07. The business has a 50 day simple moving average of $38.72 and a 200-day simple moving average of $33.80. The stock has a market capitalization of $22.15 billion, a P/E ratio of 10.54, a P/E/G ratio of 0.69 and a beta of 2.02. Super Micro Computer has a 12 month low of $19.48 and a 12 month high of $54.08.

Insiders Place Their Bets

In related news, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total value of $4,502,000.00. Following the sale, the director directly owned 337,506 shares of the company's stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the firm's stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the transaction, the chief executive officer owned 337,506 shares of the company's stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 400,000 shares of company stock valued at $16,442,000. Company insiders own 16.10% of the company's stock.

Institutional Trading of Super Micro Computer

Large investors have recently modified their holdings of the business. Gibbs Wealth Management purchased a new position in shares of Super Micro Computer during the 3rd quarter worth approximately $246,000. James Investment Research Inc. acquired a new position in shares of Super Micro Computer during the 3rd quarter worth approximately $212,000. Inspire Investing LLC lifted its stake in Super Micro Computer by 29.1% in the 3rd quarter. Inspire Investing LLC now owns 247,468 shares of the company's stock valued at $10,164,000 after buying an additional 55,806 shares in the last quarter. Yousif Capital Management LLC lifted its stake in Super Micro Computer by 6.6% in the 3rd quarter. Yousif Capital Management LLC now owns 54,980 shares of the company's stock valued at $2,258,000 after buying an additional 3,381 shares in the last quarter. Finally, Brookstone Capital Management purchased a new position in Super Micro Computer during the third quarter worth $1,462,000. 84.06% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Super Micro Computer

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Raised revenue outlook signals strong AI demand. Super Micro guided for fiscal Q1 2027 revenue of $18.5 billion to $19.5 billion, well above its prior forecast of $14.5 billion to $15.5 billion and the roughly $14.9 billion analyst consensus. The company also expects gross margins to exceed earlier guidance, supported by a record order backlog. Super Micro Computer Raises Full-Year Revenue Guidance on Strong AI Demand
• Positive Sentiment: Northland Securities significantly increased its earnings forecasts. The firm raised its FY2027 EPS estimate to $5.38 from $3.78 and FY2028 EPS estimate to $6.85 from $4.80. It also lifted estimates across nearly every quarter, including Q1 2027 to $1.55 from $0.94, reflecting expectations for sustained AI server growth.
• Positive Sentiment: New NVIDIA-based products expand Super Micro’s AI opportunity. The company introduced a liquid-cooled, 256-CPU NVIDIA Vera rack designed for high-density agentic AI workloads. The integrated solution includes networking, power, cooling and deployment services, potentially increasing the value of Super Micro’s data-center offerings. Supermicro Introduces the NVIDIA Vera CPU Rack
• Neutral Sentiment: Super Micro’s addition to the S&P 500 forced index funds to purchase shares near a peak in investor enthusiasm. Subsequent weakness highlights the potential for passive-investment flows to amplify volatility. Super Micro Has Lost 60.86% Since It Was Tapped for the S&P 500
• Negative Sentiment: Investors remain concerned about AI hardware supply constraints and the company’s supply chain. The recent rally also prompted profit-taking, creating near-term selling pressure even as the long-term demand outlook improves. Super Micro Pulls Back During AI Supply Fears

Super Micro Computer Company Profile

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.

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