Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Super Micro Computer (Nasdaq: SMCI ) fell 13% at the opening bell after the company said it would miss fiscal second-quarter forecasts.
So what: Revenue guidance range was cut from $260 million-$280 million down to $249 million-$250 million. Earnings guidance was cut to $0.24-$0.25 from a previous guidance of $0.27-$0.32. The shortfall was blamed of flooding in Thailand and the ensuing effects on the company's supply chain.
Now what: The effect is expected to continue into the first quarter of 2012 and influence the company's ability to capitalize on Intel's (Nasdaq: INTC ) Romley server that will be launched in March. ThinkEquity analyst Rajesh Ghai thinks 10%-20% of the company's supply may be affected, and it's unknown how long the decrease in supply will last. I don't see a reason to rush out and buy shares today, especially after shares have recovered slightly from the opening of the market. I would wait until management updates the situation later this month in its earnings call.
Interested in more info on Super Micro Computer? Add it to your watchlist by clicking here.
No comments:
Post a Comment