Here's Why I'm Staying Away from Super Micro Stock
Artificial intelligence (AI) server manufacturer Super Micro Computer (NASDAQ: SMCI) regained compliance with the Nasdaq exchange earlier this year by filing its outstanding quarterly and annual financial reports. The company delayed filing its annual 10-K report last year due to issues with internal controls. This type of delay is never good news for investors, but Supermicro was able to remove a big cloud hanging over the stock.Unfortunately, the company now has a new problem. Supermicro reported preliminary results for its fiscal third quarter on Tuesday, and the figures were a gut punch for investors. The company slashed its revenue outlook to a range of $4.5 billion to $4.6 billion, down from prior guidance of $5 billion to $6 billion. Adjusted earnings per share also got a haircut, with a new guidance range of $0.29 to $0.31, landing well below the previous range of $0.46 to $0.62.Supermicro didn't provide many details with its preliminary results, but it did say some customers delayed purchasing decisions in the third quarter. Those delays pushed sales back into the fourth quarter, leading to a revenue shortfall.Continue reading
Artificial intelligence (AI) server manufacturer Super Micro Computer (NASDAQ: SMCI) regained compliance with the Nasdaq exchange earlier this year by filing its outstanding quarterly and annual financial reports. The company delayed filing its annual 10-K report last year due to issues with internal controls. This type of delay is never good news for investors, but Supermicro was able to remove a big cloud hanging over the stock.
Unfortunately, the company now has a new problem. Supermicro reported preliminary results for its fiscal third quarter on Tuesday, and the figures were a gut punch for investors. The company slashed its revenue outlook to a range of $4.5 billion to $4.6 billion, down from prior guidance of $5 billion to $6 billion. Adjusted earnings per share also got a haircut, with a new guidance range of $0.29 to $0.31, landing well below the previous range of $0.46 to $0.62.
Supermicro didn't provide many details with its preliminary results, but it did say some customers delayed purchasing decisions in the third quarter. Those delays pushed sales back into the fourth quarter, leading to a revenue shortfall.
