Super Micro Computer's earnings forecast fell far short of expectations, plunging 20% in after-hours trading, dragging down Nvidia and Dell
Super Micro Computer's adjusted EPS preliminary data for the third fiscal quarter is expected to be between $0.29 and $0.31, far below analysts' expectations of $0.53. Revenue is projected to be between $4.5 billion and $4.6 billion, compared to an expectation of $5.35 billion. Super Micro Computer stated that during the third fiscal quarter, some customer platform decision delays caused some sales to be pushed to the fourth fiscal quarter. Affected by Super Micro Computer's performance, Dell fell nearly 5% in after-hours trading, HP dropped about 2%, and NVIDIA briefly fell 2.9%
On Tuesday after the U.S. stock market closed, server manufacturer Super Micro Computer announced preliminary results for the third fiscal quarter, which fell short of analysts' expectations, causing the stock price to plummet in after-hours trading.
Key financial data:
The preliminary adjusted EPS for the third fiscal quarter is between $0.29 and $0.31, far below the analysts' expectation of $0.53.
Revenue is between $4.5 billion and $4.6 billion, compared to the expected $5.35 billion.
According to the company's statement, Super Micro Computer has lowered its previously provided earnings guidance for the quarter ending March 31. The new revenue range indicates an 18% year-over-year growth, significantly lower than the 200% growth level from the same period last year.
Super Micro Computer stated in the announcement that during the third fiscal quarter, some customer platform decisions were delayed, causing some sales to be pushed into the fourth fiscal quarter. Additionally, the company is facing increased inventory of outdated products and expedited costs. These two factors led to a preliminary gross margin contraction of 220 basis points compared to the previous quarter.
Analysts pointed out that this early earnings warning is another blow to Super Micro Computer in recent years. Over the past year, the company has been troubled by delays in financial reporting and negative reports from short-selling firms.
In February of this year, Super Micro Computer timely submitted its financial reports for the first two quarters of fiscal year 2024 and 2025, avoiding delisting from Nasdaq just before the deadline. Last year, due to delays in submitting its annual report, the company lost its auditing firm Ernst & Young due to governance issues. In November of last year, the company appointed BDO as its new auditing firm.
2023 was a highlight year for Super Micro Computer, as it rode the AI wave and sold a large number of servers equipped with NVIDIA chips, with its stock price once rising to over three times. However, in the second half of 2024, the company's stock price fell sharply, with a market value evaporating by more than 80%.
Super Micro Computer's CEO, Liang Jianhou, told analysts during a conference call in February this year: "If the supply chain can keep up with demand, we are confident that the full-year growth in 2025 can be replicated or even exceed that of 2023."
Super Micro Computer's stock price plunged by 20% in after-hours trading on Tuesday. Weighed down by its performance, competitor Dell's stock price fell nearly 5% in after-hours trading, HP dropped about 2%, and NVIDIA saw a decline of 2.9% at one point in after-hours trading.
Before the announcement on Tuesday, Super Micro Computer's stock price had risen 18% in 2025, while the overall tech sector had generally declined during the same period.
Super Micro Computer will hold a conference call with analysts at 5 PM Eastern Time on Tuesday, May 6, to further discuss its performance
