Super Micro Computer late Tuesday reported fiscal third-quarter results that beat the midpoints of its lowered guidance from last week. But the data-center specialist disappointed with its outlook for the current quarter. SMCI stock sank on the news.
The San Jose, Calif.-based company, better known as Supermicro, earned an adjusted 31 cents a share on sales of $4.6 billion in the quarter ended March 31. In the year-earlier quarter, it earned 67 cents a share on sales of $3.85 billion.
On April 29, Supermicro lowered its guidance range for earnings and sales in the period, saying some customers had delayed orders until the current quarter. The company guided to earnings of 30 cents a share on sales of $4.55 billion, based on the midpoint of its outlook. Before the company's warning, Wall Street had been looking for earnings of 53 cents a share on sales of $5.38 billion.
For the June quarter, Supermicro forecast adjusted earnings of 45 cents a share on sales of $6 billion. That's based on the midpoint of its outlook. Analysts polled by FactSet had predicted earnings of 66 cents a share on sales of $6.65 billion in the fiscal fourth quarter.
For its fiscal 2025, Supermicro lowered its revenue guidance to a range of $21.8 billion to $22.6 billion from its prior range of $23.5 billion to $25 billion.
SMCI Stock Retreats On Delayed Orders
"Some customers delayed making platform decisions in the quarter," Chief Executive Charles Liang said in a news release. "We do expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets, however economic uncertainty and tariff impacts may have a short-term impact."
Supermicro is well positioned to capitalize on the growing market opportunity thanks to its AI technology leadership, Liang said. That technology edge includes direct liquid-cooled servers and its Data Center Building Block Solution, he said.
In after-hours trading on the stock market today, SMCI stock dropped 4% to 31.60. During the regular session Tuesday, SMCI stock rose 2.4% to close at 32.94.
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