BlackRock, Inc., the world’s largest asset manager, has reported a highly successful third quarter for 2024, marked by strong financial growth. The firm’s total assets under management (AUM) surged to a record $11.5 trillion, driven by $221 billion in net inflows during the quarter. This represents a significant year-over-year increase of $2.4 trillion in AUM, showcasing BlackRock's continued leadership in the asset management industry.
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Supermicro Announces Stellar Growth in Q3 Fiscal Year 2024 Financial Results
Super Micro Computer, Inc. (Nasdaq: SMCI), a renowned Total IT Solution Provider specializing in AI, Cloud, Storage, and 5G/Edge, has reported a groundbreaking third quarter for the fiscal year 2024, ending March 31, 2024. The San Jose-based company achieved net sales of $3.85 billion, marking a significant increase from $3.66 billion in the previous quarter and a staggering 200% growth from $1.28 billion in the same quarter of the previous year.
Key Financial Highlights
- Net Sales: $3.85 billion, up from $3.66 billion in Q2 FY2024 and $1.28 billion in Q3 FY2023.
- Gross Margin: Reported at 15.5%, slightly up from 15.4% in the previous quarter, though down from 17.6% last year.
- Net Income: Surged to $402 million from $296 million in Q2 FY2024 and $86 million in Q3 FY2023.
- Earnings Per Share (EPS): Diluted EPS reached $6.56, up from $5.10 in the previous quarter and $1.53 year-over-year. Non-GAAP diluted EPS was $6.65.
The non-GAAP figures were adjusted for stock-based compensation expenses, highlighting the company's effective management and strong operational performance.
Operational Cash Flow and Capital Expenditures
The company reported a cash flow usage of $1,520 million in operations during the quarter, with capital expenditures totaling $93 million. This financial management reflects the company's strategic reinvestments into its growing infrastructure and technology offerings.
Leadership Commentary
Charles Liang, President and CEO of Supermicro, expressed his enthusiasm about the results, stating, "We had yet another record quarter with fiscal Q3 revenue of $3.85 billion with non-GAAP EPS of $6.65 per share. This year-over-year revenue growth of 200% and year-over-year non-GAAP EPS growth of 308% was well above our industry peers.” Liang credits this success to the strong demand for AI rack scale PnP solutions and innovative DLC designs, which have significantly expanded Supermicro's market leadership in AI infrastructure.
Updated Financial Outlook
Looking forward, Supermicro is optimistic about the continuing demand for its products and has raised its revenue outlook for fiscal year 2024 from $14.3 billion to $14.7 billion, to a new range of $14.7 billion to $15.1 billion. For the fourth quarter of fiscal year 2024, the company expects net sales between $5.1 billion and $5.5 billion, with GAAP net income per diluted share between $7.20 and $8.05, and non-GAAP net income per diluted share between $7.62 and $8.42.
Market Reaction to Q3 Results
Despite the impressive financial performance reported by Supermicro for the third quarter of fiscal year 2024, the stock market reacted unexpectedly in the after-hours trading. Following the announcement, Supermicro’s stock price experienced a significant drop, declining by 10%. This decline in after-market trading highlights the often volatile nature of stock market responses to corporate earnings reports, even when companies post strong earnings growth and positive forward guidance. This reaction could be attributed to various market dynamics, investor expectations, or broader economic factors impacting tech stocks.
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