Why Super Micro Computer Stock Is Falling Friday

Super Micro Computer, Inc. SMCI shares are falling Friday after the company announced its third quarter earnings release date and did not provide preliminary estimates as it has done in the past.

The Details:

Investors are concerned that the lack of quarterly preliminary estimates may be a sign of worse-than-expected financial results for SMCI. 

Shares of semiconductor companies have been trading lower amid weakness in the technology sector and following ASML Holdings N.V.'s ASML worse-than-expected earnings report. 

Taiwan Semiconductor Manufacturing Company Ltd. TSM also reported its quarterly results earlier this week and lowered its chip market outlook as it sees consumer weakness persisting which overshadowed its Q1 results.

Super Micro Computer is set to release its third-quarter financial results after the market close on April 30 and will host a conference call to discuss the results at 5:00 p.m. ET the same day. According to estimates from Benzinga Pro, analysts expect the company to report earnings of $5.84 per share and quarterly revenue of $4.012 billion. 

Related News: What’s Going On With Google Parent Alphabet Stock Ahead Of Earnings?

SMCI Stock Prediction 2024:

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Super Micro Computer have an average 1-year price target of $991.93, representing an expected upside of 31.63%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. One analyst has a bearish recommendation on Super Micro Computer, while 10 analysts have bullish ratings. The street high price target from Loop Capital is $1500, while the street low from Susquehanna is $250.

SMCI Price Action: According to Benzinga Pro, Super Micro Computer shares are down 18.4% at $757.62 at the time of publication Friday.

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