Super Micro Computer (SMCI) has announced a 10-for-1 stock split along with disappointing second-quarter financial results.
The company, which makes high-efficiency servers that run artificial intelligence (AI) applications and models, said that its stock will begin trading on a split-adjusted basis Oct. 1.
The split will lower Super Micro Computer’s share price from $616.94 U.S. to $61.69 U.S. based on where the stock currently trades.
Super Micro Computer is the latest in a series of companies to split its stock this year.
Microchip designers Nvidia (NVDA) and Broadcom (AVGO) each split their stocks on a 10-for-1 basis in recent months.
Unfortunately, news of the stock split came with Q2 financial results that sent Super Micro Computer’s stock plunging 14% in pre-market trading.
The Silicon Valley-based company reported earnings per share (EPS) of $6.25 U.S., which badly missed Wall Street’s consensus target of $8.07 U.S.
Revenue in the April through June quarter totaled $5.31 billion U.S. compared to $5.30 billion U.S. that was forecast.
Super Micro Computer also said that its gross margin dropped to 11.2% from 17% a year earlier. A lower margin means the company is earning less profit on each product it sells.
Looking ahead, Super Micro Computer said that it expects revenues of $6 billion U.S. to $7 billion U.S. for the current third quarter. That’s ahead of analyst estimates of $5.46 billion U.S.
However, an earnings outlook of $5.59 U.S. to $8.27 U.S., or a $7.48 U.S. at the midpoint, is below consensus estimates of $7.58 U.S. registered on Wall Street.
Prior to today (Aug. 7), Super Micro Computer’s stock had risen 116% this year to trade at $616.94 U.S. per share, making it the top-performing stock in the S&P 500 index.
Super Micro Computer’s stock has surged as investors buy into the AI trade and bet that the company will become an essential vendor of servers for Nvidia’s microchips.
Tech Insider
