- Super Micro Computer Inc. (SMCI) reported fiscal third-quarter earnings of $0.31 per share and revenues of $4.6 billion, missing consensus estimates of $0.41 and $5.01 billion, respectively, after lowering guidance due to delayed customer orders.
- The company issued disappointing guidance for Q4, projecting earnings of $0.40 – $0.50 per share and revenues of $5.6 – $6.4 billion, below consensus estimates of $0.66 and $6.65 billion, with FY25 revenue guidance also cut to $21.8 – $22.6 billion against $23.55 billion expected.
- Despite short-term challenges from economic uncertainty and tariff impacts, CEO Charles Liang remains optimistic about securing delayed orders and leveraging AI and direct liquid-cooled technology leadership for long-term growth.
Super Micro Computer Inc. (SMCI), a San Jose-based leader in data-center solutions, experienced a nearly 6% decline in its stock price to $31.02 during after-hours trading on Tuesday, reflecting investor disappointment with its fiscal fourth-quarter and full-year 2025 guidance. Despite reporting third-quarter results that surpassed the midpoints of its recently lowered expectations, the company’s cautious outlook for the current quarter and fiscal year overshadowed these gains, signaling potential headwinds in the near term.
For the fiscal third quarter ending March, Super Micro reported earnings of $0.31 per share, excluding non-recurring items, falling short of the $0.41 consensus estimate by $0.10. Revenues grew 19.5% year-over-year to $4.6 billion, yet missed Wall Street’s $5.01 billion forecast. The shortfall follows a preemptive guidance cut on April 29, when the company adjusted its third-quarter outlook to earnings of $0.29 to $0.31, down from its prior range of $0.46 to $0.62, on sales of $4.5 billion to $4.6 billion, citing delays in customer orders. This was a notable downgrade from earlier analyst expectations of 53 cents per share and $5.38 billion in sales. Charles Liang, Founder, President, and CEO, attributed the delays to customers postponing platform decisions, though he expressed optimism about securing these commitments in the June and September quarters.
Looking ahead, Super Micro’s guidance for the fourth quarter and fiscal year 2025 further dampened sentiment. The company projects fourth-quarter earnings of $0.40 to $0.50 per share, excluding non-recurring items, against a consensus of $0.66, with revenues expected between $5.6 billion and $6.4 billion, below the $6.65 billion anticipated. For the full year 2025, revenue guidance was set at $21.8 billion to $22.6 billion, down from its prior range of $23.5 billion to $25.0 billion and undercutting the $23.55 billion consensus. Liang acknowledged potential short-term challenges, including economic uncertainty and tariff impacts, but emphasized the company’s strong positioning in high-growth areas like AI and direct liquid-cooled (DLC) technologies.
Super Micro’s Data Center Building Block Solutions (DCBBS) and advancements in AI infrastructure remain central to its long-term strategy. The company has carved a niche in providing customizable, high-performance server and storage solutions tailored for hyperscale data centers, a market driven by surging demand for AI and cloud computing. However, the delayed customer commitments highlight the volatility of capital expenditure cycles in the data-center industry, where macroeconomic factors and geopolitical risks, such as tariffs, can disrupt purchasing decisions. Despite these challenges, Super Micro’s focus on innovation, particularly in energy-efficient cooling technologies like DLC, aligns with industry trends toward sustainability and cost optimization.
The market’s reaction reflects a broader scrutiny of data-center equipment providers navigating uneven demand patterns. While Super Micro’s third-quarter revenue growth of 19.5% underscores its ability to capture market share, the guidance cuts suggest near-term hurdles in converting its technological leadership into consistent financial performance. Liang’s confidence in meeting long-term targets hinges on the company’s ability to capitalize on deferred orders and maintain its competitive edge in a rapidly evolving sector. For now, investors appear wary, as the stock’s after-hours slide indicates skepticism about the pace of recovery in the coming quarters.
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