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Server company Super Micro Computer on Tuesday announced a 10-for-1 stock split, set to begin trading on a split-adjusted basis on Oct. 1. It also issued upbeat guidance for the first quarter.
Here’s how the company did vs. LSEG estimates for the quarter that ended in June:
- Earnings: $6.25 adjusted vs. $8.07 expected
- Revenue: $5.31 billion vs. $5.30 billion expected
Shares in the company, which competes with companies like Dell and Hewlett Packard Enterprise, have surged over recent years as investors bet it will be an essential vendor of servers for Nvidia, whose graphics cards are powering the artificial intelligence boom.
Stock splits do nothing to change the financial fundamentals of a company but they so make each share cheaper, which can have a positive psychological effect on retail investors.
Shares of Super Micro, which joined the S&P 500 in March, surged 246% in 2023 and are up 117% year-to-date.
Super Micro shares slid as much as 7% in extended trading. The stock closed Tuesday at $618.94.
Super Micro said it expects first-quarter revenues between $6 billion and $7 billion, beating Wall Street’s estimate of $5.46 billion. It expects EPS of $5.59 to $8.27, or a $7.48 midpoint, compared to the consensus estimates of $7.58.
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Source Agencies
