By Angela Palumbo and Brian Swint
Super Micro Computer stock was falling Tuesday after the server maker provided disappointing fourth-quarter guidance.
Super Micro said it expects fourth-quarter adjusted earnings to be between 40 cents a share and 50 cents a share, which is below Wall Street estimates of 66 cents a share. Revenue for the June quarter is expected to be between $5.6 billion and $6.4 billion, also below the consensus call among analysts of $6.65 billion.
Super Micro also said it now expects fiscal 2025 revenue to be between $21.8 billion and $22.6 billion, a cut from its prior estimates of $23.5 billion to $25 billion. Analysts surveyed by FactSet expected 2025 revenue of $23.6 billion.
"Some customers delayed making platform decisions in the quarter," CEO Charles Liang said in the earnings release. He added that he expects commitments to land in the June and September quarters, but "economic uncertainty and tariff impacts may have a short-term impact."
Shares were down 4.0% in after-hours trading following the results.
Super Micro also reported third-quarter adjusted earnings of 31 cents a share on revenue of $4.6 billion. On April 29, in a preliminary earnings announcement, the company said it expected third-quarter sales to be $4.5 to $4.6 billion, with adjusted earnings from 29 cents to 31 cents. The stock dropped 12% on April 30, as those preliminary results were below Wall Street estimates.
Before delaying results and replacing its auditor last year, Super Micro was a darling of the artificial intelligence trade. It operates in cloud computing -- which is key to the outlook for technology's biggest companies such as Microsoft, Amazon, Apple, and Meta Platforms -- and its servers often house Nvidia chips.
Super Micro shares are down 60% over the past 12 months. Wall Street analysts surveyed by FactSet survey are broadly split on the stock's prospects -- four give it a Buy rating, five give it a Hold, and one says Sell.
Write to Angela Palumbo at angela.palumbo@dowjones.com and Brian Swint at brian.swint@barrons.com
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May 06, 2025 16:47 ET (20:47 GMT)
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