Why Super Micro Computer Shares Fell Today

Shares of Super Micro Computer (NASDAQ: SMCI) fell today, down by 7% as of 3:20 p.m. EDT, after the company reported preliminary fiscal first-quarter earnings that were worse than expected. The stock was down by 18% in the morning, but has recovered some of those losses.

Super Micro said it expects to report net sales in the range of $675 million to $685 million compared to the previous outlook of $625 million to $685 million in revenue. Despite sales coming in at the high end of prior guidance, the company cut its forecast for profitability. Non-GAAP earnings per share are now expected to be $0.26 to $0.30, far worse than the previous forecast of $0.30 to $0.40 per share in adjusted profits.

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Source: Fool.com