Super Micro Computer Faces Stock Decline Amid Revised Earnings Forecast
Recent Financial Performance
Super Micro Computer, Inc. (SMCI) encountered a severe downturn in its stock price during after-hours trading on Tuesday, following the release of its preliminary quarterly results that fell short of expectations.
Quarterly Revenue Expectations
The server manufacturer and partner of Nvidia (NVDA) announced that it anticipates fiscal third-quarter revenue in the range of $4.5 billion to $4.6 billion. This forecast is a stark reduction from the previous estimate of $5 billion to $6 billion. Additionally, the company now projects adjusted earnings per share (EPS) to be between 29 cents and 31 cents, down from an earlier forecast of 46 cents to 62 cents.
Impact on Stock Price
In response to this disappointing news, SMCI’s shares plummeted by over 15% in after-hours trading. Prior to this dip, the stock had seen an impressive rise of 18% for the year, ending Tuesday at a high note.
Factors Influencing the Downward Revision
Supermicro indicated that delays in consumer product decisions have shifted sales into the company’s fiscal fourth quarter, contributing significantly to the lower-than-anticipated revenue.
Concerns About Company Stability
The company has faced considerable volatility in its stock performance over the past year, primarily driven by worries regarding its accounting practices and the risk of being delisted from the Nasdaq. Although the company met the exchange’s filing deadline in February, uncertainties remain, particularly regarding the implications of tariffs on their operations.