Super Micro Computer Inc (NASDAQ:SMCI) shares plunged almost 16% after the high-performance server producer reported preliminary results for the fiscal third quarter below its earlier guidance.
The company now expects revenue for fiscal Q3, which ended March 31, in the range of $4.5 billion to $4.6 billion, down from its earlier guidance of $5 billion to $6 billion and about $1 billion below estimates of $5.5 billion at the midpoint.
Earnings per share (EPS) are expected to be in the range of $0.29 to $0.31, below its previous guidance range of $0.46 to $0.62. Wall Street analysts were expecting EPS of $0.53.
SuperMicro noted that during Q3 some delayed platform decisions moved sales into Q4.
Analysts at Wedbush repeated their ‘Neutral’ rating on Super Micro following its business update.
“While GB200/NVL-72 technology hurdles and B200 availability appear to have improved through the course of CQ1, we certainly could see these issues as well as uncertainty around US policy implications as representing headwinds for SMCI in the prior quarter, explaining the company's difficult results,” they wrote.
They believe with US policy a potential forward headwind and continued gross margin pressure a point of longer-term concern, they “see no reason to take a more constructive view” on SuperMicro.
Wedbush has a $40 price target on Super Micro, which traded down 15.5% at $30 in the early afternoon on Wednesday.