Super Micro Computer, Inc. (NASDAQ: SMCI)
Super Micro Computer, Inc. (SMCI), a high performance server solution and storage technology company on Thursday announced disappointing first quarter fiscal 2016 financial results.
Super Micro Computer, Inc. Earnings and Outlook
Super Micro Computer lowers first quarter guidance numbers. Revenues were $529-$530 million missing Capital IQ consensus estimates of $542.95 million. Adjusted EPS was $0.44-$0.45 which also missed Capital IQ estimates of $0.54.
Super Micro Computer, Inc. CEO Comments
“Stronger seasonal effects combined with weaker Europe and Asia activity, and customer push outs led to our revenue being at the lower end of our guidance. The pattern of seasonally weak September and March quarters as compared to stronger June and December quarters continues,” said Charles Liang, Chairman and CEO. “We continue to maintain our full year expectations for revenue growth for fiscal 2016 and remain confident that Supermicro will continue to gain market share and grow multiple times the industry growth rate led by growth in storage, cloud computing, HPC and enterprise. We will provide more details on the first quarter financial performance at the time of our earnings call later this month.” Business Wire
SMCI Technical Analysis
SMCI gapped down in price on Friday to $27.20, down from the prior day’s close of $31.82 which is a 15% decrease in price based on unfavorable news. Taking a look at the daily chart, we can see the last time the stock traded below this price level was on October 1st when the stock closed at $26.61. Taking a further look back on the daily chart we can see that the stock has been in a trading range between $24 and $28 dating back to July 6th. On two occasions the stock broke through that price level; on September 16th when the stock opened at $28.09 and the current spike up that started on October 5th opening at $28.10. Both times the stock fell back into the trading range, and with Thursday’s disappointing earnings announcement it might be time to take a short position in the stock. For trading purposes, my entry short would have been $27.00 looking for a run down to $26 and below. My stop loss would be the gap down price of $27.20 fearing if we move above that the stock would start to fill in the gap down.
Super Micro Computer, Inc., together with its subsidiaries, develops and provides high performance server solutions based on modular and open-standard architecture. The company offers a range of server, storage, blade, workstation, and full rack solutions, as well as networking devices, server management software, and technology support and services. It also provides a range of application optimized server solutions, including rackmount and blade server systems; and server subsystems and accessories comprising server boards, and chassis and power supplies, as well as other system accessories, including microprocessors, and memory and disc drives. The company offers its products to data center, cloud computing, enterprise IT, big data, high performance computing, and embedded markets. It sells its server systems, and server subsystems and accessories primarily through distributors that comprise value added resellers and system integrators, and OEMs, as well as through direct sales force. The company has operations primarily in San Jose, California; the Netherlands; Taiwan; China; and Japan. Super Micro Computer, Inc. was founded in 1993 and is headquartered in San Jose, California. Yahoo Finance