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Super Micro Computer experienced a significant drop in its stock value by nearly 19% on Tuesday following the announcement of preliminary fiscal third-quarter results that fell short of analysts’ expectations.
Here’s a breakdown of the company’s preliminary figures compared to the LSEG consensus:
Earnings per share: 29 to 31 cents, adjusted vs. 54 cents expected
Revenue: $4.5 billion to $4.6 billion vs. $5.5 billion expected
The revised outlook reflects a reduction in previously projected figures for the quarter ending March 31. According to a statement from the company, the new revenue range suggests an 18% growth, a stark contrast to the 200% growth achieved the previous year.
Super Micro cited that during the third quarter, some customers delayed platform decisions, causing sales to shift into the fourth quarter. The company additionally noted an increase in inventory reserves due to older generation products.
Previously, Super Micro had anticipated revenue between $5 billion and $6 billion, with earnings per share estimated at 46 to 62 cents. The organization also indicated its gross margin for the quarter was down by 220 basis points compared to the prior period.
In a reflection of market concerns, shares of competitor Dell fell nearly 5% in after-hours trading, while Hewlett Packard Enterprise dropped about 2%. Nvidia shares experienced a decline of around 2% as well.
The recent news marks another setback for Super Micro, which has faced scrutiny over delayed financial disclosures and troubling allegations from short sellers over the past year. In February, the company managed to file its financial results for fiscal 2024 and the first two quarters of fiscal 2025, just before a crucial Nasdaq deadline.
The company encountered serious governance issues last year when it delayed its annual report, leading to the loss of its auditor, Ernst & Young. BDO was subsequently appointed as the new auditor in November.
After witnessing a surge in stock prices during 2023, largely fueled by its role in the AI boom and its sales of servers equipped with Nvidia processors, Super Micro saw its stock value plummet in the latter half of last year, erasing over 80% of its market capitalization.
Charles Liang, CEO of Super Micro, expressed confidence in potential growth for the calendar year 2025, suggesting it could mirror or exceed the remarkable performance of 2023, provided that supply chains can adequately meet demand.
Before the announcement on Tuesday, Super Micro’s stock had risen by 18% in 2025, which was notable as the broader tech market faced challenges.
Super Micro plans to discuss the details of its results with analysts during a conference call scheduled for 5 p.m. ET on Tuesday, May 6.
— CNBC’s Ari Levy contributed to this report.
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