Super Micro Computer says fourth-quarter margins will be twice as high as expected

Super Micro Computer’s gross margins in the fourth quarter will be around twice as high as previously forecast, sending shares higher after-hours.

The server company on Tuesday said it expects gross margins of 15% to 17%, up from its previous guidance for up 8.2% to 8.4%. The increase was due largely to a favorable customer and product mix, the company said.

The stock rallied 17% to $29.92 after the bell on Tuesday. Shares closed up 7% at $25.50, and are down 13% this year.

Super Micro’s revenue is expected to come in at the low end of its guidance, between $11 billion and $12.5 billion. Analysts polled by FactSet are expecting fourth-quarter revenue of $11.73 billion.

The company also said it received more than $60 billion in new orders during the fourth quarter, giving it a record backlog coming out of the fiscal year.

Write to Elias Schisgall at [email protected]