NEW YORK (TheStreet) -- Super Micro Computer (SMCI) spiked on Wednesday morning following better-than-expected second-quarter earnings a day earlier. By mid-morning, shares had surged 15.7% to $21.41.
The server manufacturer reported net income for the quarter ended December of 35 cents a share, 9 cents higher than analysts surveyed by Yahoo! Finance had anticipated. Revenue of $356.4 million came in 22.3% higher than the year-ago quarter.
For the third quarter ending March, management expects net income between 24 cents and 30 cents a share and revenue in the range of $320 million to $350 million. Prior to guidance, analysts anticipated third-quarter net income of 25 cents a share on $317.36 million in revenue.
"We are looking forward to strong growth in calendar 2014 because of our foundation in global capacity and in strong product innovation," said CEO Charles Liang in a statement.
TheStreet Ratings team rates SUPER MICRO COMPUTER INC as a Buy with a ratings score of B-. The team has this to say about their recommendation:
"We rate SUPER MICRO COMPUTER INC (SMCI) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."