Super Micro Computer (NASDAQ:) reported mixed results for the fiscal Q3 2024 and raised revenue outlook for the full year.

Shares fell 2.7% in after-hours trading.

The company posted quarterly earnings per share (EPS) of $6.65, beating the analysts' expectations of $5.80. However, revenue came in at $3.85 billion, notably below the consensus estimate of $3.99 billion.

The company's non-GAAP gross margin for the third quarter of fiscal year 2024 stood at 15.6%, after adjusting for $3 million in stock-based compensation expenses.

Looking ahead, Super Micro Computer projects its fourth-quarter 2024 EPS to be between $7.62 and $8.42, topping the analysts' consensus of $7.14. It also anticipates fourth-quarter revenue to range from $5.1 billion to $5.5 billion, also above the projected $4.89 billion.

For the full fiscal year 2024, Super Micro Computer expects EPS to be between $23.29 and $24.09, above the analysts' estimates of $21.99. Total revenue for the year is raised to a range of $14.3 billion to $14.7 billion, compared to the consensus estimate of $14.6 billion.

“Strong demand for AI rack scale PnP solutions, along with our team’s ability to develop innovative DLC designs, enabled us to expand our market leadership in AI infrastructure,” Charles Liang, President and CEO of Supermicro.

“As new solutions ramp, including fully production ready DLC, we expect to continue gaining market share.”