Super Micro Stock Plunges on Revenue Shortfall and Weak Profit Outlook

Super Micro's stock tumbled more than 10% following a disappointing third-quarter earnings report. Revenue of $5.02 billion fell well short of the $6 billion analysts had forecast, while adjusted earnings of 35 cents per share missed expectations of 40 cents. The figures represent a 15% decline from the same period last year, when the company reported $5.94 billion in revenue.

Warning signs emerged two weeks ago when Super Micro preemptively slashed its revenue guidance to $5 billion, down from an earlier range of $6 billion to $7 billion. The company attributed the shortfall to delayed server builds, which it expects to ship in the current quarter. Net income also took a hit, dropping to $168.3 million from $424.3 million a year earlier.

Despite the weak results, Super Micro attempted to reassure investors by raising guidance for the current quarter. The company now anticipates revenue between $10 billion and $11 billion, significantly above the $7.83 billion consensus estimate. The delayed server builds, described as 'design win upgrades,' are expected to contribute to the bullish outlook.