Super Micro Computer (SMCI) Stock Fluctuates Amid SEC Filing Delays and Earnings Miss
KEY FACTS:
* SMCI stock initially plunged after earnings announcement but later recovered.
* Company expects to submit delayed SEC filings by Nasdaq's Feb. 25 deadline, avoiding delisting.
* Second quarter revenue fell short of estimates, with guidance for fiscal 2025 revised downward.
* Independent review found no evidence of misconduct following short-seller allegations.
* Department of Justice and SEC have subpoenaed documents related to the allegations.
OVERVIEW:
Super Micro Computer (SMCI) stock experienced volatility following the company's announcement of delayed SEC filings and preliminary earnings results. Initially, shares dropped as much as 19% after the bell but rebounded, closing with a 3% gain.
FILING DELAYS AND CONTROVERSIES:
The company faces the risk of delisting from the Nasdaq due to delayed annual and quarterly SEC filings. However, it was granted an extension to submit the filings by Feb. 25. Super Micro has hired a new accountant and asserted that an independent review has cleared it of misconduct allegations made by short-seller Hindenburg Research.
EARNINGS MISS AND GUIDANCE ADJUSTMENT:
Preliminary second quarter earnings fell short of Wall Street estimates, with revenue projected to be $5.6-$5.7 billion compared to the expected $5.95 billion. The company also lowered its revenue guidance for fiscal 2025.
INVESTIGATION AND LITIGATION:
SMCI confirmed receiving subpoenas from the Department of Justice and SEC regarding allegations in the Hindenburg report. Additionally, the company faces multiple securities litigation complaints, which it believes lack merit.
STOCK PERFORMANCE AND ANALYSIS:
Super Micro stock had rallied ahead of its business update but reversed course on Tuesday. The recent market fluctuations highlight ongoing controversies surrounding the company. Investors should monitor developments in the SEC investigation and the Nasdaq delisting risk.