Shares of Super Micro Computer (SMCI) are little changed in after-hours trading after the computer hardware manufacturer reported soft preliminary results for its second quarter of Fiscal Year 2025, which included a huge miss on guidance. Earnings per share came in between $0.58 and $0.60, which missed analysts’ consensus estimate of $0.61 per share. Sales increased by 54% year-over-year, with revenue of between $5.6 billion and $5.7 billion. This also missed analysts’ expectations of $5.77 billion.
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Separately, Super Micro aims to file its 2024 annual report, along with quarterly reports for the September and December 2024 periods, by February 25. This move comes after the company delayed filing its quarterly reports due to allegations of improper accounting, which led to an internal review.
In addition, Super Micro has secured $700 million in funding through a private placement of 2.25% Convertible Senior Notes that will be due in 2028. The company also renegotiated the terms of its existing Convertible Senior Notes that are due 2029. Super Micro plans to use the proceeds from the private placement for general corporate purposes.
SMCI’s Guidance for Q3 2025
Looking forward, management has provided the following guidance for Q3 2025:
- Q3 revenue between $5 billion and $6 billion versus estimates of $5.976 billion
- Q3 adjusted EPS of $0.46 to $0.62 compared to expectations of $0.66
As you can see, guidance was significantly worse than expected but had little impact in after-hours trading because shares had already plunged almost 10% in today’s regular trading session.
Investor Sentiment for SMCI Stock
Surprisingly, although SMCI’s stock price has rallied lately, the sentiment among TipRanks investors is currently negative. Out of the 785,293 portfolios tracked by TipRanks, 4.1% hold SMCI stock. However, it is worth noting that 1.9% of portfolios decreased their positions in the stock during the past month. Nevertheless, the average portfolio weighting allocated towards SMCI among those who do have a position is 5.49%. This suggests that the investors holding on to the stock are confident about its future.
Is SMCI Stock a Good Buy?
Turning to Wall Street, analysts have a Hold consensus rating on SMCI stock based on two Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 50% decline over the past year, the average SMCI price target of $29.75 per share implies a further 23.6% downside risk. However, it’s worth noting that estimates will likely change following today’s earnings report.
