A Stock Split Is On The Way But Heres Why Shares Are Still Falling

WEB Super Micro's Stock Plunges After Earnings Miss, Despite Stock Split Announcement

A Stock Split is on the Way, but Here's Why Shares Are Still Falling

WEB Super Micro Computer reported fiscal fourth-quarter earnings that missed analysts' estimates and announced a 10-for-1 stock split. The stock initially jumped after the announcement but has since given up those gains.

Why the Stock is Falling

There are several reasons why WEB Super Micro's stock is falling despite the stock split announcement. First, the company's earnings miss was significant. Analysts were expecting the company to earn $0.65 per share on an adjusted basis, but the company only earned $0.625 per share.

Second, the company's revenue growth was disappointing. Revenue rose just 2.5% year-over-year, which is below the company's long-term growth target of 5%. Third, the company's guidance for the first quarter was below analysts' expectations. The company forecast revenue of $1.2 billion to $1.25 billion, while analysts were expecting revenue of $1.26 billion.

Conclusion

WEB Super Micro's stock split announcement was not enough to offset the negative impact of the company's earnings miss and disappointing guidance. The stock is now trading at its lowest level in over a year and could continue to fall if the company does not improve its financial performance.