[Image Source: Wikimedia]
Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open architecture. It offers a range of server, storage, blade, workstation, and full rack solutions, as well as networking devices, server management software, and technology support and services. The company also provides a range of application optimized server solutions, including rackmount and blade server systems; and server subsystems and accessories comprising server boards, and chassis and power supplies, as well as other system accessories, including microprocessors, and memory and disc drives. In addition, it provides customer support services and hardware enhanced services. The company offers its products to data center, cloud computing, enterprise IT, big data, high performance computing, and Internet of Things/embedded markets. It sells its server systems, and server subsystems and accessories through direct sales force, as well as through distributors that comprise value added resellers and system integrators, and OEMs. The company has operations primarily in San Jose, California; the Netherlands; Taiwan; China; and Japan. Super Micro Computer, Inc. was founded in 1993 and is headquartered in San Jose, California.
[Image Source: Wikimedia]
Over the 3 days after I Know First issued a bullish short term forecast for SMCI on May 4, 2018, Super Micro Computer’s stock price jumped from $19.90 to $24 per share, outperforming the market by about 14%. What happened that drove the growth? The reason lies in the company’s 3Q financial statements.
On May 3rd, 2018 Super Micro Computer, Inc. announced their Q3 fiscal 2018 financial statements with the following highlights:
- Net sales in a range of $785 million to $795 million compared to its previous guidance range of $700 million to $780 million
- GAAP gross margin in the range of 13.0% to 13.2%
- GAAP fully diluted earnings per share in the range of $0.28 to $0.32
- Q4 Fiscal 2018 Guidance
The GAAP gross margin range of 13.0% to 13.2% that the Company expects to report includes stock-based compensation of $0.4 million and accelerated building depreciation expense of $2.6 million. The GAAP fully diluted earnings per share range of $0.28 to $0.32 that the Company expects to report includes stock-based compensation expense of $6.1 million, Audit Committee investigation expense of $9.5 million, and accelerated building depreciation expense of $2.6 million. At March 31, 2018, total cash, cash equivalents and short-term investments was $136.0 million and bank debt was $186.3 million.
As for the Q4 Fiscal 2018 Guidance, the Company expects net sales in a range of $800 million to $860 million for the fourth quarter of fiscal year 2018 ending June 30, 2018.
I Believe that the increased revenues in the Q3 and the Q4 guidance that were announced are the main reason for the company’s growth during the 3-day time period.
From the above data one can see that Super Micro Computer, Inc. increased its share value by about 14% after announcing their successful Q3 fiscal 2018.
On May 4th, 2018 I Know First issued a bullish 3 days forecast for Quick Win by the Algorithm: Super Micro Computer, Inc. (NASDAQ: SMCI). The forecast illustrated a signal of 3.35 and a predictability of 0.07. In accordance with the forecast, SMCI’s stock returned 27.70% over this period, highlighting the accuracy of the prediction produced by the I Know First algorithm.
Current I Know First subscribers received this bullish SMCI forecast on May 4, 2018
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Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.
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