Super Micro’s shares dropped as much as 19% on Tuesday following the announcement of its preliminary third-quarter fiscal results, which fell short of analysts’ expectations. The company reported adjusted earnings per share between 29 and 31 cents, well below the anticipated 54 cents. Revenue for the quarter was between $4.5 billion and $4.6 billion, missing the expected $5.5 billion.
The lowered guidance for the quarter, which ended on March 31, included an 18% revenue growth, a sharp decline from the previous year’s 200% growth. Super Micro explained that certain customer platform decisions were delayed, resulting in sales being pushed into the fourth quarter. Additionally, the company saw higher inventory reserves due to older-generation products, further contributing to the disappointing figures.
Previously, Super Micro had projected revenue of $5 billion to $6 billion and earnings per share between 46 cents and 62 cents. The company also reported that its gross margin for the quarter was 220 basis points lower than the prior period.
This announcement marks the latest setback for Super Micro, which has faced significant challenges over the past year. These issues include delayed financial filings and controversies from short sellers. In February, the company managed to file its financial statements for fiscal 2024 and the first two quarters of fiscal 2025, just in time to meet Nasdaq’s deadline to remain listed.
Super Micro’s troubles were further compounded when it lost its auditor, Ernst & Young, in 2023 due to governance concerns, leading the company to appoint BDO as its new auditor. After a strong 2023, driven by the AI boom and its sales of servers with Nvidia’s processors, Super Micro shares plummeted in the latter half of the year, erasing more than 80% of its market value.
Despite these setbacks, CEO Charles Liang expressed confidence in the company’s growth potential for 2025, suggesting that it could match or exceed the success of 2023 if the supply chain can meet the rising demand. Prior to this announcement, Super Micro’s stock had risen 18% in 2025, even as the broader tech market experienced declines.
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