Super Micro Shares Sink Despite Revenue Surge and Stock Split. Should Investors Buy the Stock on the Dip?

Following its fiscal fourth-quarter earnings report, shares of Super Micro Computer (NASDAQ: SMCI) sank 20% in the next trading session, even though the server solutions company announced a stock split and issued strong revenue guidance. Despite the pullback, the stock is still up about 70% on the year.

Let's take a closer look at the company's quarterly results, why it sold off, and whether investors should look to buy the dip.

For its fiscal fourth quarter, Super Micro saw its revenue surge 143% to $5.31 billion, which was pretty much in line with what analysts had expected. However, its earnings per share (EPS) of $6.25 fell well short of expectations of $8.07 due to gross margin pressure the company experienced in the quarter.

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Source Fool.com