Super Micro Computer (SMCI) late Tuesday missed Wall Street’s lowered targets for its fiscal third quarter but guided much higher than views for the current period. SMCI stock surged in extended trading.

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The San Jose, Calif.-based company, better known as Supermicro, earned an adjusted $1.63 a share on sales of $1.28 billion in the quarter ended March 31. Analysts polled by FactSet had expected earnings of $1.71 a share on sales of $1.39 billion. On a year-over-year basis, Supermicro earnings rose 5% while sales fell 5%.

On April 24, Supermicro warned that its fiscal third-quarter revenue would fall well short of expectations. Supermicro slashed its sales goal to about $1.28 billion from its earlier forecast of $1.47 billion. The company blamed the shortfall primarily on component shortages impacting its next-generation server products.

However, for the current quarter, Supermicro predicted adjusted earnings of $2.46 a share on sales of $1.8 billion. That’s based on the midpoint of its outlook. Wall Street had predicted earnings of $1.76 a share on sales of $1.64 billion in the fiscal fourth quarter ending June 30.

SMCI Stock Pops Higher After Report

In after-hours trading on the stock market today, SMCI stock jumped 8.5% to 113.34. During the regular session Tuesday, SMCI stock dipped 0.7% to close at 104.43.

“Supermicro continues to see record levels of engagements in our new generation product lines, especially for AI applications,” Chief Executive Charles Liang said in a news release.

He added, “With the recent new key components supply chain challenges mostly in the rearview mirror and production normalizing, we expect to gain share and expand scale as we emerge as the true leader for rack-scale Total IT Solutions.”

SMCI stock is on three IBD stock lists: IBD 50, Stock Spotlight and Tech Leaders.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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