
Super Micro Computer, Inc. (NASDAQ:SMCI) shares are trading lower Wednesday after the company reported worse-than-expected third-quarter financial results on Tuesday after the market closed.
The Details: Super Micro reported adjusted earnings per share of 31 cents, missing the consensus estimate of 50 cents. In addition, the company reported sales of $4.60 billion, missing the consensus estimate of $5.42 billion.
Super Micro reported cash flow from operations of $627 million and capital expenditures of $33 million.
“We continue to make great progress with our DCBBS (Data Center Building Block Solution), DLC (Direct Liquid Cooled-2) and AI technology leadership, but some customers delayed making platform decisions in the quarter,” said Charles Liang, Founder, President, and CEO of Supermicro.
“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. We believe that we are well positioned in the long-term to capitalize on the growing market opportunity.”
Outlook: The company lowered its fiscal-year 2025 sales guidance. The company previously saw sales from $23.50 to $25 billion. It now anticipates sales from $21.80 billion to $22.60 billion, versus the consensus estimate of $23.94 billion.
For the fourth quarter, Super Micro sees adjusted earnings per share from 40 cents to 50 cents, versus the consensus estimate of 69 cents. Furthermore, the company sees sales from $5.60 billion to $6.40 billion, versus the consensus estimate of $6.82 billion.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Wedbush analyst Matt Bryson maintained a Neutral rating on Super Micro and lowered the price target from $40 to $30.
- Citigroup analyst Asiya Merchant maintained a Neutral rating on Super Micro and lowered the price target from $39 to $37.
- Needham analyst Quinn Bolton reinstated a Buy rating on Super Micro and announced a $39 price target.
- Rosenblatt analyst Kevin Cassidy maintained a Buy rating on Super Micro and lowered the price target from $55 to $50.
See Also: CrowdStrike Stock Is Sliding Wednesday: What’s Going On?
SMCI Price Action: At the time of publication, Super Micro shares are trading 6.31% lower at $30.84, per data from Benzinga Pro.
Image: via Shutterstock