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

Fermi (NASDAQ:FRMI) posted its quarterly earnings data on Thursday. The company reported ($0.22) earnings per share 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 Price Performance

Shares of Fermi stock traded up $0.24 on Thursday, reaching $2.06. 77,577,981 shares of the company traded hands, compared to its average volume of 16,687,615. The company has a 50 day moving average of $3.68 and a 200 day moving average of $6.20. Fermi has a 52 week low of $1.44 and a 52 week high of $21.74. The firm has a market capitalization of $1.32 billion and a PE ratio of -1.74.

Analyst Upgrades and Downgrades

FRMI has been the subject of several research analyst reports. Weiss Ratings lowered Fermi from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Friday, August 14th. Mizuho lowered their target price on Fermi from $27.00 to $11.00 and set an “outperform” rating on the stock in a research note on Tuesday, July 28th. Finally, Cantor Fitzgerald cut their price target on shares of Fermi from $12.00 to $8.00 and set an “overweight” rating on the stock in a report on Friday, October 16th. One investment 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 issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $13.83.

Insider Activity at Fermi

In related news, major shareholder Toby Neugebauer sold 5,000,000 shares of Fermi stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $1.52, for a total value of $7,600,000.00. Following the sale, the insider owned 84,813,010 shares of the company’s stock, valued at approximately $128,915,775.20. The trade was a 5.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Over the last quarter, insiders have sold 12,125,749 shares of company stock valued at $28,639,969. Insiders own 2.83% of the company’s stock.

Hedge Funds Weigh In On Fermi

Several institutional investors and hedge funds have recently bought and sold shares of FRMI. NewEdge Advisors LLC increased its position in Fermi by 22.5% in the second quarter. NewEdge Advisors LLC now owns 11,431 shares of the company’s stock worth $105,000 after buying an additional 2,101 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new position in shares of Fermi during the 2nd quarter valued at $41,000. Farther Finance Advisors LLC lifted its position in shares of Fermi by 139.1% during the 3rd quarter. Farther Finance Advisors LLC now owns 10,456 shares of the company’s stock valued at $44,000 after buying an additional 6,083 shares during the last quarter. GW&K Investment Management LLC grew its stake in shares of Fermi by 128.4% during the 3rd quarter. GW&K Investment Management LLC now owns 11,748 shares of the company’s stock worth $49,000 after acquiring an additional 6,604 shares during the period. Finally, HighTower Advisors LLC grew its stake in shares of Fermi by 9.6% during the 3rd quarter. HighTower Advisors LLC now owns 77,568 shares of the company’s stock worth $327,000 after acquiring an additional 6,816 shares during the period.

About Fermi

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.