Shares of Super Micro Computer (NASDAQ: SMCI) fell over 4% in pre-market trading on Wednesday after the company reported mixed third-quarter results and lowered its full-year outlook.
The data center solutions provider posted adjusted earnings per share (EPS) of $0.31, slightly ahead of Wall Street expectations of $0.30. However, its revenue for the quarter totaled $4.6 billion, marking a 19% decline from the previous quarter and matching its revised guidance of $4.5-$4.6 billion.
The company also trimmed its revenue outlook for fiscal year 2025 to between $21.8 billion and $22.6 billion. This is down from its previous forecast of $23.5 billion to $25.0 billion and falls short of the analyst consensus of $23.5 billion.
For the fourth quarter, Super Micro forecasts revenue between $5.6 billion and $6.4 billion, below analysts’ estimates of $6.81 billion. Adjusted EPS is projected to be between $0.40 and $0.50, missing the $0.64 consensus.
CEO Charles Liang said the weaker-than-expected performance was largely due to delays in customer platform decisions. He added,
“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.”
Super Micro also reported a significant decline in profitability. Gross margin shrank to 9.6% from 15.5% in the same quarter last year, and net income dropped to $109 million, down from $402 million a year ago.
Despite the short-term challenges, Liang remains confident in the company’s long-term prospects, stating,
“We believe that we are well-positioned in the long term to capitalize on the growing market opportunity.”
As of the latest update, Super Micro Computer (NASDAQ: SMCI) shares are down 4.37%, trading at $31.50.
Kevin Putnam is a financial journalist and editor based in New York. He specializes in editing news and analysis related to U.S. stock market. Read Full Bio
