Latest news with #enterprise IT
Yahoo
a day ago
- Business
- Yahoo
Supermicro Shares Plunge on Outlook. Is This a Red Flag or a Buying Opportunity?
Key Points Supermicro continues to have difficulty forecasting revenue. More problematic is that the company continues to feel gross margin pressures. The stock isn't overly expensive, but it's in a low-margin, low-moat business. 10 stocks we like better than Super Micro Computer › Super Micro Computer (NASDAQ: SMCI) shares plunged following the release of its fiscal 2025 fourth-quarter results, reinforcing its status as one of the more volatile stocks in the market. The stock now trades down around 25% over the past year, but it is still up nearly 50% year to date, as of this writing. The developer of end-to-end computing solutions for data centers, cloud computing, enterprise IT, big data, and high-performance computing has been on a roller coaster ride over the past year, as it has consistently lowered its revenue guidance throughout its fiscal year. This started last November, when it slashed its fiscal first-quarter revenue guidance to a range of $5.9 billion to $6 billion from an earlier forecast of between $6 billion and $7 billion. It followed that up in February, when it announced that its fiscal Q2 revenue would fall short of expectations. In May, its fiscal Q3 revenue came up short of its earlier guidance, and it forecast fiscal Q4 revenue well below analyst expectations. Perhaps, then, it should be no surprise that when the company reported its fiscal Q4 results, it once again missed analyst expectations. Revenue forecasting and gross margins problems persist For the quarter, Supermicro's revenue rose 7% year over year to $5.76 billion, which missed the $5.89 billion analyst consensus, as compiled by LSEG. It was also toward the low end of its earlier guidance range for sales to be between $5.6 billion and $6.4 billion. In addition to its issues with forecasting revenue, Supermicro has also seen gross margin pressure. This started in its June 2024 quarter, when its gross margin plunged to 11.3% from 17% a year earlier. At the time, the company said that this was because it lowered prices in order to secure new design wins. However, its gross margins have not recovered, with the blame being shifted to the graphics processing unit (GPU) platform transition (Nvidia's move from Hopper to Blackwell), with more price competition surrounding older platforms. In fiscal Q4, its gross margins sank even further, coming in a 9.5%, versus 10.2% a year ago and 9.6% in fiscal Q3. Lower gross margins are a problem, as they make it more difficult to turn revenue into profits. The company is looking to gradually improve its gross margins through offering complete data center solutions and an increased focus on higher-margin markets, such as enterprise, IoT, and telecom. Its long-term goal is to still get back to around 15% to 16%, but it said that fiscal Q1 gross margins would be similar to Q4. Its weak gross margins, meanwhile, are hurting its profits. Adjusted EPS plunged 24% to $0.41, which fell short of the $0.44 analyst consensus. And while the company's fiscal Q1 revenue guidance of between $6 billion and $7 billion bracketed the $6.6 billion consensus, its adjusted EPS guidance of $0.40 to $0.52 was well below analyst estimates of $0.59. For the full year fiscal 2026, however, the company projected strong revenue growth. It forecast revenue to rise to at least $33 billion, which would represent growth of 50%. Given its Q1 outlook, though, this would be more back-end loaded. The company expects the growth to be driven by expanding its enterprise customer base, upcoming product innovations, and its new Data Center Building Block Solutions (DCBBS), a modular architecture that helps customers get new data centers up and running quickly. Is it time to buy the dip? While Supermicro's robust full-year revenue guidance is positive, it's also difficult to put a lot of credence into it, given that the company consistently lowered its forecast and missed expectations this past fiscal year. Meanwhile, its gross margin issues have not gone away. It continues to be a low-margin, low-moat business that may have difficulty navigating GPU product transition cycles. From a valuation standpoint, the stock now trades at a forward price-to-earnings ratio (P/E) of just over 16 times based on fiscal-year 2026 analyst estimates. That appears reasonable on the surface, especially given its revenue growth guidance. However, this is a much different business than other artificial intelligence (AI) infrastructure plays like chipmakers, which tend to have wider moats and robust gross margins. If Supermicro can improve its gross margins and meet its revenue growth targets, the stock should have nice upside from here. Given its recent track record, though, it's not a bet I'm looking to make. Should you buy stock in Super Micro Computer right now? Before you buy stock in Super Micro Computer, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Super Micro Computer wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Supermicro Shares Plunge on Outlook. Is This a Red Flag or a Buying Opportunity? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Al Bawaba
5 days ago
- Business
- Al Bawaba
Lenovo Launches Modular DaaS for Sustainability to Manage Carbon, Reduce IT Costs, and Boost ROI
Lenovo today introduced TruScale Device as a Service (DaaS) for Sustainability, a modular solution that helps enterprises advance sustainability goals while modernizing IT. The solution gives organizations new tools to reduce their carbon footprint, extend device life, and accelerate the shift to a circular economy — all backed by over 15 years of Lenovo asset recovery experience and more than 1 million devices responsibly some deployments, TruScale DaaS has delivered up to 35% reductions in device-related IT costs2, without the burden of upfront capital or complex procurement cycles. Recent industry research shows that 62% of organizations invest in sustainability because of the associated cost savings3, highlighting the dual financial and environmental value of Lenovo TruScale DaaS for the latest addition to Lenovo's proven TruScale DaaS platform, already trusted to manage millions of devices worldwide, this sustainability-focused model unifies devices, services, and financing under one scalable, subscription-based solution. From day one, each device supports a more circular, cost-effective, and sustainable IT strategy and delivers measurable ROI in weeks, not months.'Enterprises are rethinking how they manage IT – not just for performance, but for purpose,' said John Stamer, Vice President and General Manager, Global Product Services at Lenovo. 'TruScale DaaS for Sustainability reflects our vision for the future of IT: circular by default, intelligent by design, and accountable by outcome. It's a smarter, more resilient way to deliver value across the enterprise.'Powering Sustainability Through Circular ITModular options at every stage of the device lifecycle help reduce emissions, recover value, and shrink e-waste, including:• Carbon Impact Portal – real-time device-level insights to support ESG reporting.• Certified Refurbished Devices – lower refresh costs and reduce carbon footprint.• CO₂ Offset Services – built-in lifecycle emissions compensation with verified climate action.• Asset Recovery Services – protected decommissioning and residual value recoveryAccording to McKinsey, up to 60% of end-user device emissions can be reduced through strategies such as sourcing fewer devices per user and extending device lifespans.4 Lenovo TruScale DaaS for Sustainability supports this kind of impact by offering modular options to extend device life, refurbish hardware, and offset emissions across the Benefits• Cost Impact:o 57% of DaaS adopters report a lower cost-per-seat. 5o Lenovo customers see a 20% TCO reduction. 2o IT maintenance savings range from 10 to 40%.6• Device energy efficiency:o 100% of Lenovo commercial laptops and desktops, and 98% of monitors, are ENERGY STAR® certified. 7Customer Outcomes: Real-World ResultsCoventry University Group replaced its aging IT estate with Lenovo TruScale DaaS and offset 223 tons of CO₂ using the Lenovo CO₂ Offset Services included as part of their TruScale DaaS solution. The shift saved 40 hours per week in IT labor and improved device delivery and service support across global faculty networks.'Lenovo TruScale gives us the scalability and flexibility we need to manage our technology estate efficiently and meet our carbon reduction goals,' said Ian Dunn, Provost, Coventry University Group. 'It's taken pressure off our internal teams, allowing us to focus more on delivering outstanding student experiences.'Read the full story | Case studyA Smarter Path to Sustainable ITLenovo TruScale DaaS for Sustainability delivers outcome-driven value across five key stages of the device lifecycle: Advise, Implement, Support, Manage, and Retire & Refresh. This structured approach ensures IT leaders can address both operational efficiency and environmental responsibility at every touchpoint. AI-driven tools like Lenovo Intelligent Sustainability Solutions Advisor (LISSA) and Care of One™ help guide sustainable refresh strategies and enhance employee experiences. 'Sustainable IT should drive value, not complexity,' said Rakshit Ghura, Vice President and General Manager, Digital Workplace Solutions at Lenovo. 'CIOs are increasingly tasked with delivering business performance and sustainability progress in parallel. Lenovo TruScale DaaS for Sustainability meets this demand with data-driven, circular IT that helps simplify decision-making and unlock ROI from day one.'
