Super Micro Computer falls on lower guidance

Published 06/05/2025, 21:24
© Reuters

Investing.com -- Super Micro Computer, Inc. (NASDAQ:SMCI) reported third-quarter earnings that narrowly beat estimates but fell short on revenue and lowered its full-year outlook, sending shares down 5% in after-hours trading.

The data center solutions provider posted adjusted earnings per share of $0.31, edging past analyst expectations of $0.30. However, revenue came in at $4.6 billion, declining 19% from the previous quarter and in line with its lowered guidance of $4.5-$4.6 billion.

Super Micro Computer also reduced its fiscal year 2025 revenue guidance to a range of $21.8 billion to $22.6 billion, down from its previous forecast of $23.5 billion to $25.0 billion. The new outlook falls below the analyst consensus of $23.5 billion.

For the fourth quarter, the company projects revenue between $5.6 billion and $6.4 billion, below the $6.81 billion analysts were expecting. Adjusted EPS guidance of $0.40 to $0.50 also came in under the $0.64 consensus estimate.

CEO Charles Liang attributed the weaker performance to customer delays in platform decisions, stating, "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."

The company’s gross margin contracted to 9.6% from 15.5% YoY, while net income fell to $109 million from $402 million in the same quarter last year.

Despite the near-term challenges, Liang expressed optimism about the company’s positioning, saying, "We believe that we are well positioned in the long-term to capitalize on the growing market opportunity."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.