Super Micro Computer Inc (NASDAQ:SMCI) shares are dropping on Tuesday. Investors are looking ahead to the company's second‑quarter earnings report, which is set to be released today after the market close.
What To Expect
Super Micro is expected to report earnings of 46 cents per share on revenue of $10.38 billion. The estimates come in near the lower end of the company's guidance from November, when it projected second‑quarter revenue between $10 billion and $11 billion and non‑GAAP earnings between 46 cents to 54 cents per share.
A Look Back At Last Quarter
Last quarter, the company reported net sales of $5.0 billion, down from $5.8 billion in the previous quarter and $5.9 billion in the same period last year. Diluted earnings per share came in at 26 cents, down from 31 cents in the prior quarter and 67 cents a year ago. Gross margin slipped to 9.3%, down from 9.5% in the prior quarter and 13.1% a year earlier.
Despite the previous quarter’s revenue decline, CEO Charles Liang emphasized the company's ongoing transformation into a major AI and datacenter infrastructure provider. Super Micro reported more than $13 billion in Blackwell Ultra orders and said it expects to generate at least $36 billion in revenue for fiscal 2026.
Mixed Analyst Sentiment
Super Micro Computer has seen varied analyst actions in recent months. This week, Rosenblatt maintained its buy rating and set a target of $55.00, the highest among recent analyst actions. On the contrary, Goldman Sachs assumed a sell rating on Jan. 13, setting a lower target price of $26.00.
Meanwhile, Citigroup maintained a neutral rating on Jan. 20, dropping the target from $48.00 to $39.00. Similarly, Mizuho also held a neutral stance on Jan. 9, lowering its target from $45.00 to $31.00. Furthermore, BofA Securities rated Super Micro Computer stock a sell, setting a $34.00 target on Dec. 2.
SMCI Price Action: Super Micro Computer shares were down 1.99% at $29.13 at the time of publication on Tuesday, according to Benzinga Pro.
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