Raspberry Pi stock dips after profit forecast at lower end
Raspberry Pi’s stock price has dipped by 2.2 per cent after it said adjusted operating profit was expected to come in on the low end of what had been expected by markets.
The Cambridge-based tech firm said it expected its full year adjusted operating profit to be above $36m (£28.9m), compared to a range of between $35m to $40.8m expected by analysts.
In a trading update, Raspberry Pi reported that monthly unit shipments had recovered from their low point in the summer, reaching 7m across 2024. However, this was below the 7.6m expected by Peel Hunt analysts.
However, the Peel Hunt analysts argued that despite slightly disappointing numbers, the firm had managed to evolve beyond its origin as a non-profit and its engineering-first mindset.
The firm reported $45m in cash on hand, with product launches in the second half of the year including the Pico 2 and Compute Module 5.
Looking ahead, Raspberry Pi expected “demand to build gradually” throughout the next year, while noting an “increasing number” of direct to Original Equipment Manufacturer discussions.
After trading sideways since its IPO in June, Raspberry Pi’s stock price took off in December, and has surged by more than 90 per cent in the last two months.
The Christmas boost came after US hedge fund SW Investment Management bought a 3.59 per cent stake in the firm.
“We are proud of the group’s performance in our first year as a PLC, achieving significant milestones, including listing the company on the London Stock Exchange, our inclusion in the FTSE 250 index, and the successful launch of key products, against a backdrop of challenging end-market demand,” Raspberry Pi CEO Eben Upton said.
“We have worked hard to launch a variety of accessory products aimed at our education and enthusiast customers and are pleased with the progress we are making in the industrial and embedded market.
“With an exciting product roadmap and ongoing initiatives to strengthen our market position, we look to the future with confidence and are excited about the opportunities that lie ahead.”
Raspberry Pi is set to report its full-year results on 2 April.