Fermi (NASDAQ:FRMI) Posts Earnings Results, Misses Expectations By $0.15 EPS

Fermi (NASDAQ:FRMI) issued its quarterly earnings results on Thursday. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.07) by ($0.15), FiscalAI reports.

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

• Fermi announced an agreement with an investment-grade hyperscaler for 600 MW of capacity, backed by a $200 million prepayment and an early site-development agreement. The definitive long-term lease is still pending; Fermi is targeting initial power availability in late Q2 or early Q3 2027.
• The previously announced TensorWave lease will not proceed. Fermi attributed the change to the complexity of a multi-party deal dependent on third-party credit, and said it is prioritizing direct agreements with investment-grade hyperscalers.
• Management said its active pipeline with hyperscalers could cover the planned 2.2 GW of capacity, with opportunities extending several gigawatts beyond that. These are prospective deals, not signed leases, and Fermi aims to anchor the campus with four to five customers.
• Fermi remains pre-revenue and reported $286 million of unrestricted cash, $958 million of debt, $54.5 million in Q3 operating cash outflow, and $133 million in capital spending. Management plans to rely more on customer payments and project-level financing to limit demands on corporate cash.
• Fermi said it has invested more than $1.6 billion in the site, holds air permits for 6 GW, and has secured more than 2 GW of generation equipment. Management views its site, fuel, permitting, and infrastructure readiness as advantages that may help customers move faster.

Fermi Stock Down 1.2%

NASDAQ FRMI traded down $0.03 during midday trading on Friday, hitting $2.04. The company had a trading volume of 14,101,194 shares, compared to its average volume of 16,732,535. The firm has a fifty day simple moving average of $3.63 and a two-hundred day simple moving average of $6.16. Fermi has a fifty-two week low of $1.44 and a fifty-two week high of $19.22. The stock has a market cap of $1.30 billion and a price-to-earnings ratio of -1.72.

Insider Buying and Selling at Fermi

In related news, major shareholder Toby Neugebauer sold 5,000,000 shares of Fermi stock in a transaction dated Thursday, November 5th. The stock was sold at an average price of $1.52, for a total transaction of $7,600,000.00. Following the sale, the insider directly owned 84,813,010 shares of the company’s stock, valued at $128,915,775.20. This trade represents a 5.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have sold a total of 12,125,749 shares of company stock valued at $28,639,969 in the last three months. 2.83% of the stock is currently owned by company insiders.

Institutional Trading of Fermi

Hedge funds have recently modified their holdings of the company. Integrated Wealth Concepts LLC bought a new position in shares of Fermi during the 2nd quarter worth about $41,000. NewEdge Advisors LLC bought a new stake in shares of Fermi in the 1st quarter valued at approximately $54,000. SteelPeak Wealth LLC bought a new stake in shares of Fermi in the 3rd quarter valued at approximately $42,000. Farther Finance Advisors LLC grew its stake in shares of Fermi by 139.1% in the 3rd quarter. Farther Finance Advisors LLC now owns 10,456 shares of the company’s stock valued at $44,000 after purchasing an additional 6,083 shares during the period. Finally, Financial Management Professionals Inc. acquired a new position in shares of Fermi in the 2nd quarter worth approximately $104,000.

Trending Headlines about Fermi

Here are a few of the latest headlines about FRMI:

• Neutral Sentiment: The company maintained its Texas Tech partnership while ending its TensorWave lease; the impact of those changes on future growth remains unclear. Fermi Inc. Stock and Project Matador Update
• Negative Sentiment: Fermi reported a third-quarter loss of $0.22 per share, worse than the roughly $0.07–$0.08 loss analysts expected. The miss may heighten concern about execution and the time needed to develop its projects. Fermi Q3 Earnings Flash
• Negative Sentiment: The $200 million commitment offers only partial relief from the termination of a previously announced $6.5 billion deal, leaving a substantial gap in Fermi’s expected development plans. Fermi’s New AI Deal Softens the Blow of a $6.5 Billion Setback

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the company. Mizuho lowered their price target on Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a report on Tuesday, July 28th. Weiss Ratings restated a “sell (e+)” rating on shares of Fermi in a research note on Thursday. Finally, Cantor Fitzgerald decreased their price objective on shares of Fermi from $12.00 to $8.00 and set an “overweight” rating for the company in a report on Friday, October 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.83.

Fermi Company Profile

Fermi Inc. develops energy and data-center infrastructure intended to support artificial intelligence and other high-performance computing needs. Its business centers on planning and building integrated campuses that pair large-scale power resources with data-center facilities. The company’s flagship development is Project Matador, a planned campus in the Texas Panhandle near Amarillo. The project is designed to combine data centers with a mix of power-generation and energy-storage resources; it remains a development project rather than an established portfolio of operating facilities.