Super microcomputer (SMCI) shares tumbled Friday after the data center computer specialist announced the date for its next quarterly earnings report without providing preliminary results. SMCI stock fell below a key support level on the news, sending a huge sell signal.
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The San Jose, California-based company, known as Supermicro, said it plans to report its fiscal third-quarter results on April 30 after the market closes. Unlike recent quarters, however, it didn’t offer an early look at results.
During morning trading on the stock market today, SMCI stock fell 18% to 757.51. The move saw it drop below the 50-day moving average line, a key support level, in above-average trading volume. SMCI shares held this level during the recent market turmoil.
Super Micro stock is 19% below its 10-week moving average. Even being 2% below the 10-week line could be a sell signal for a long-time winner in a stock.
On Jan. 19, shares of Super Micro rose 35.9% to 423.36 after the company announced preliminary results with its second-quarter earnings report date. That led to a run that eventually peaked at 1,229 on March 8.
Super Micro has benefited from large-scale cloud service providers investing in servers for artificial intelligence applications. SMCI stock was added to the S&P 500 last month.
SMCI stock is on two IBD lists
In seven of the past ten quarters, Super Micro has released preliminary results with the announcement of quarterly earnings. That includes the last two fiscal third quarters.
For the fiscal third quarter ending March 31, analysts forecast Super Micro earnings of $5.84 per share on revenue of $4.01 billion. That would translate into year-over-year growth of 258% in profit and 212% in revenue.
SMCI stock is on two IBD stock lists: Big Cap 20 and Tech Leaders.
According to IBD Stock Checkup, Super Micro ranks first among the 15 stocks in IBD’s computer hardware industry group.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer tech, software and semiconductor stocks.
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