Data center specialist Super Micro Computer late Tuesday released preliminary March-quarter sales and earnings figures that were well below Wall Street's targets. SMCI stock cratered on the news.
The San Jose, Calif.-based company, better known as Supermicro, lowered its guidance range for its fiscal third quarter ended March 31. Supermicro now expects sales of $4.5 billion to $4.6 billion, down from its prior guidance range of $5 billion to $6 billion. The new midpoint of $4.55 billion is below the consensus estimate of analysts of $5.38 billion.
Further, Supermicro now expects adjusted earnings for fiscal Q3 of 29 to 31 cents a share, down from its prior goal of 46 to 62 cents. The new midpoint of 30 cents compares to Wall Street's target of 53 cents.
"During Q3 some delayed customer platform decisions moved sales into Q4," the company said in a news release.
Supermicro will release its final results for the March quarter on May 6.
In after-hours trading on the stock market today, SMCI stock tumbled more than 16% to 30.04.
The Supermicro news comes as investors are skittish about the strength of the AI data center market. Supermicro technology partner Nvidia saw its shares drop 2% in late trades Tuesday.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
