Time: 2024-08-07
Shares of NASDAQ : SMCI , Super Micro Computer , fell 13 % after the company 's fiscal fourth - quarter earnings failed to meet expectations . The company announced a 10 - for-1 stock split scheduled to commence trading on Oct. 1 .
Super Micro Computer 's net income of 52.7 million , or .51 per share , showed an improvement from 93.5 million , or .43 per share , in the same period last year . The company foresees first - quarter revenues to fall between billion and billion , surpassing Wall Street 's projection of .46 billion . Additionally , EPS is expected to range from .59 to .27 , with a midpoint of .48 , compared to the consensus estimates of .58 . Super Micro , a key player in the server industry competing with giants like Dell and Hewlett Packard Enterprise , has seen a significant surge in its stock price , with a 246 % increase in 2023 and a 117 % surge year - to - date , closing at 18.94 on Tuesday.
Super Micro Computer CEO Charles Liang expressed the company 's benefit from the soaring demand for AI infrastructure . He believes Super Micro is well - positioned to become the leading IT infrastructure company with its advanced technology like rack - scale DLC liquid cooling and the business value of its new Datacenter Building Block Solutions . The company expects revenue for the first quarter of fiscal 2025 to range from billion to billion , and its full - year sales outlook stands at 6 billion to 0 billion , surpassing analysts ' estimates.
Despite the positive outlook for Super Micro , the company 's stock plummeted more than 12 % in extended trading following the earnings announcement . The 10 - for-1 stock split may have a psychological impact on retail investors , making shares more affordable without altering the company 's financial fundamentals . However , the drop in stock price indicates a mixed reaction from investors post - earnings release.
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