Super Micro Computer Stock Fluctuates Amidst Nasdaq Delisting Deadline and Earnings Miss
Super Micro Computer (SMCI) shares experienced volatility after market close on Tuesday after the company announced its expected submission of delayed financial filings to the SEC by February 25th to avoid delisting.
Financial Performance and Nasdaq Extension
The company reported preliminary second-quarter earnings, missing Wall Street analysts' estimates. Revenue is projected between $5.6 billion and $5.7 billion for the quarter ended December 31st, below the $5.95 billion consensus. Revenue guidance for the fiscal year 2025 was revised downward to a range of $23.5 billion to $25 billion.
The Nasdaq granted Super Micro an extension to submit the delayed filings by February 25th. The company has hired a new accountant, and an independent business review found no evidence of misconduct.
Legal and Regulatory Matters
Super Micro confirmed receiving subpoenas from the Department of Justice and SEC related to allegations in a short-seller report from August 2024. The company is cooperating with these requests.
Super Micro is also facing securities litigation and derivative suits, which it believes are without merit.
Market Reaction
SMCI shares initially declined by 19% after the earnings announcement but quickly reversed course. As of late Tuesday, the stock was trading over 3% higher. The stock had rallied ahead of its business update on February 11th but reversed direction on Tuesday. Shares fell over 9% by the end of the trading day, ending a week-long rally that saw a gain of nearly 60%.