Super Micro Computer

Posted on | by Leon Hinde | Leave a Comment on Super Micro Computer

Super Micro Computer, reported its Q3 Fiscal Year 2026 results on May 5, 2026. While the stock saw a massive surge (up ~18-25%) immediately following the announcement, the report was a “beat and miss” that shifted investor focus toward profitability and long-term guidance.

Revenue: $10.24 billion, representing 123% year-over-year growth. However, this missed the analyst estimate of $12.4 billion

Full Year 2026 Revenue: Raised to a range of $38.9 billion to $40.4 billion (up from previous targets of ~$36B).

Key Growth Drivers

    • AI Infrastructure Dominance: AI GPU-related platforms (NVIDIA, AMD, Intel-based) contributed over 80% of total revenue.
    • Supply Chain & Deferred Revenue: The revenue miss was attributed to temporary supply chain constraints and “customer readiness” (data centers lacking sufficient power/networking to accept immediate delivery). Management noted a record-high backlog, suggesting that the missed revenue is deferred to future quarters rather than lost.
    • Direct Liquid Cooling (DLC): SMCI highlighted its leadership in liquid-cooled rack solutions, which are increasingly required for the latest high-power AI chips (like NVIDIA’s Blackwell).

    Balance Sheet & Risks

    • Negative Cash Flow: The company reported negative operating cash flow of $6.6 billion for the quarter, driven by aggressive inventory build-up ($11.1 billion) to support future deliveries.
    • Leverage: Net debt rose to roughly $7.5 billion as the company utilized convertible notes and credit lines to fund its massive working capital needs.
    • Legal Overhang: Investors remain cautious regarding an ongoing independent review of export-control matters and a class-action lawsuit (lead plaintiff deadline May 26, 2026), though management stated they do not currently expect a financial restatement.

    Sea Limited

    Posted on | by Leon Hinde | Leave a Comment on Sea Limited

    NAS:SE strong Q1 2026 earnings report, which featured a significant revenue beat and record-breaking performance across its core business segments.

    Despite an EPS miss ($0.67 vs. $0.77 expected), investors prioritized the massive top-line growth and evidence that Sea’s strategic investments in logistics and AI are improving unit economics. The company demonstrated its ability to scale rapidly while maintaining financial discipline in a competitive Southeast Asian and Latin American landscape.

    Significant Revenue Beat: Sea reported GAAP revenue of $7.1 billion, a 46.6% year-over-year increase, comfortably exceeding the analyst consensus of $6.45 billion.

    • EBITDA Milestone: The company achieved a quarterly adjusted EBITDA of $1.0 billion for the first time, representing a 9.3% increase.
    • Shopee Dominance: The e-commerce segment reached record highs with Gross Merchandise Value (GMV) of $37.3 billion (+30.2% YoY) and revenue of $4.5 billion (+44.4% YoY).

    Garena Recovery: The gaming division, Garena, delivered its strongest quarter since 2021, with bookings rising 20.1% to $931.4 million, fueled by the continued popularity of Free Fire*.

    • Fintech Growth: Its digital financial services arm, Monee, saw revenue surge 57.8% to $1.2 billion, with its loan book growing 71% while maintaining stable asset quality.

    Current Metrics (as of May 12-13, 2026)

    • Market Cap: ~$65.4 billion
    • P/E Ratio: ~38.1x (Trailing)

    Inghams

    Posted on | by Leon Hinde | Leave a Comment on Inghams

    Inghams Group shares rose 6.2% to $1.80 following a trading update that reassured investors about the company’s full-year outlook despite significant external headwinds.

    Although Inghams has struggled over the past 12 months (with the share price down over 50% in that period), the market reacted positively to signs of “stabilising” trading conditions and the company’s ability to maintain its earnings forecast despite the spike in diesel and logistics costs.

    FY26 Guidance & Financials

    • EBITDA Reaffirmed: Inghams maintained its FY26 underlying EBITDA (pre-AASB 16) guidance of $180 million to $200 million.
    • Previous Cut: This guidance had been revised downward in February 2026 (from a previous $215M–$230M range), so the reaffirmation provided the market with much-needed stability.
    • Operational Momentum: For the first nine months of FY26, group poultry volumes rose 1.1%, and net selling prices also increased by 1.1% compared to the prior corresponding period (PCP).

    Strategic & Defensive Measures
    To protect its margins against fuel and packaging inflation, Inghams is executing several key initiatives:

    • Cost-Cutting Program: Targeting $60 million to $80 million in annualised savings.
    • Inventory Management: Reduced frozen inventory by $25 million, improving cash flow and system balance.
    • Capital Expenditure: Revised FY26 CapEx guidance to approximately $80 million.

    CSL

    Posted on | by Leon Hinde | Leave a Comment on CSL

    CSL is on a nine-year low of $97.90 after downgrading the outlook for the 2026 fiscal year to now expect revenue at $US15.2 billion and a profit of $US3.1 billion – down on last year’s result. It has flagged $US5 billion ($6.91 billion) in additional non-cash pre-tax impairments over FY26 and FY27.