WhiteFiber (NASDAQ:WYFI) Announces Earnings Results

WhiteFiber (NASDAQ:WYFI) posted its quarterly earnings data on Thursday. The company reported ($0.31) EPS for the quarter, missing analysts’ consensus estimates of ($0.24) by ($0.07), FiscalAI reports. The business had revenue of $21.92 million during the quarter. WhiteFiber’s revenue for the quarter was up 30.4% compared to the same quarter last year.

Here are the key takeaways from WhiteFiber’s conference call:

• WhiteFiber reported Q1 revenue of $21.9 million, up 31% year over year, with gross margin of 60.2% and positive adjusted EBITDA of $3 million, showing continued top-line growth and profitability at the gross level.
• The NC1 data center in North Carolina is nearing initial capacity delivery, with Duke Energy having delivered the first 54 gross MW and the company expecting initial capacity to begin coming online within weeks. Management said a minor switchgear-related timing issue should not materially affect the project economics or customer commissioning.
• WhiteFiber said NC1 is backed by a long-term agreement with Nscale and could expand significantly over time, with plans to market an additional 45 MW tranche this summer and potential utility-driven growth to about 300 gross MW.
• The company completed the purchase of MTL-3 after quarter end, which it says will reduce lease payments by about CAD 3.1 million annually and give it more control over a revenue-generating asset with potential power expansion.
• Management highlighted a strong cloud pipeline, saying it is tracking more than 50,000 GPUs and about $3.3 billion of weighted pipeline value, while expecting cloud revenue to resume sequential growth in Q3 and accelerate in the second half of the year.

WhiteFiber Stock Up 11.0%

NASDAQ WYFI traded up $2.96 on Thursday, reaching $29.99. The company had a trading volume of 7,657,340 shares, compared to its average volume of 1,081,200. The stock’s 50 day moving average is $15.97 and its 200-day moving average is $18.72. The stock has a market cap of $1.15 billion and a price-to-earnings ratio of -26.31. WhiteFiber has a 52 week low of $10.51 and a 52 week high of $40.75.

Institutional Investors Weigh In On WhiteFiber

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Strs Ohio bought a new stake in WhiteFiber in the fourth quarter valued at about $30,000. Royal Bank of Canada increased its holdings in WhiteFiber by 108.2% in the fourth quarter. Royal Bank of Canada now owns 2,394 shares of the company’s stock valued at $37,000 after purchasing an additional 1,244 shares during the last quarter. Police & Firemen s Retirement System of New Jersey bought a new stake in WhiteFiber in the fourth quarter valued at about $44,000. Zurcher Kantonalbank Zurich Cantonalbank bought a new stake in WhiteFiber in the fourth quarter valued at about $55,000. Finally, MetLife Investment Management LLC bought a new stake in WhiteFiber in the fourth quarter valued at about $106,000.

Wall Street Analysts Forecast Growth

WYFI has been the subject of a number of recent research reports. Weiss Ratings restated a “sell (d)” rating on shares of WhiteFiber in a research report on Friday, March 27th. BTIG Research boosted their target price on WhiteFiber from $20.00 to $35.00 and gave the stock a “buy” rating in a research report on Thursday. HC Wainwright dropped their target price on WhiteFiber from $34.00 to $20.00 and set a “buy” rating for the company in a research report on Friday, March 27th. Cantor Fitzgerald initiated coverage on WhiteFiber in a research report on Thursday, April 9th. They set a “neutral” rating and a $13.00 target price for the company. Finally, Needham & Company LLC dropped their target price on WhiteFiber from $38.00 to $36.00 and set a “buy” rating for the company in a research report on Friday, March 27th. Ten equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, WhiteFiber has a consensus rating of “Moderate Buy” and an average target price of $32.55.

About WhiteFiber

We believe we are a leading provider of artificial intelligence (“AI”) infrastructure solutions. We own high-performance computing (“HPC”) data centers and provide cloud-based HPC graphics processing units (“GPU”) services, which we term cloud services, for customers such as AI application and machine learning (“ML”) developers (the “HPC Business”). Our Tier-3 data centers provide hosting and colocation services. Our cloud services support generative AI workstreams, especially training and inference.