Super Micro Computer stock plunged Friday after the data-center computer specialist announced the date for its next quarterly earnings report without giving preliminary results. SMCI stock plunged below a key support level on the news, flashing a huge sell signal.
The San Jose, Calif.-based company says it plans to release its fiscal third-quarter results on April 30 after the market close. However, unlike in recent quarters, it didn't offer an early look at its results.
On the stock market today, SMCI stock dived 23.1% to close at 713.65. With the move, it gapped below its 50-day moving average line, a key support level, in above-average trading volume. SMCI stock had been holding to that level during the recent market turmoil.
Super Micro stock is now 23% below its 10-week moving average. Even being 2% below the 10-week line can be a sell signal for a longtime winner, according to IBD trading guidelines.
Super Micro has benefited from hyperscale cloud service providers investing in servers for artificial intelligence applications. SMCI stock was added to the S&P 500 last month.
On Jan. 19, Super Micro shares rocketed 35.9% to close at 423.36 after the company disclosed preliminary results with its fiscal-Q2 earnings report date. That sparked a run that finally peaked at 1,229 on March 8.
SMCI Stock Is On Two IBD Lists
In seven of the past 10 quarters, Super Micro has released preliminary results with the announcement of its quarterly earnings date. That includes the last two fiscal third quarters.
For its fiscal third quarter ended March 31, analysts are predicting Super Micro earnings of $5.84 a share on sales of $4.01 billion. That would translate to year-over-year growth of 258% in earnings and 212% in sales.
SMCI stock is on two IBD stock lists: Big Cap 20 and Tech Leaders.
Super Micro ranks first out of 15 stocks in IBD's computer hardware industry group, according to IBD Stock Checkup.
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