Super Micro (SMCI) Slides Despite Filing Extension, Earnings Miss

Key Points:

* Super Micro Computer (SMCI) expects to submit delayed SEC filings by February 25th to avoid delisting.
* The company reported fourth-quarter revenue and earnings below Wall Street estimates.
* SMCI stock initially plunged but reversed direction, closing up more than 3%.
* The stock has faced turbulence after allegations of accounting irregularities.

Filing Status and Nasdaq Extension

SMCI, a rival to Dell (DELL), confirmed plans to submit overdue annual and quarterly reports to the US Securities and Exchange Commission (SEC). The company has hired a new accountant and stated that an independent review found no evidence of misconduct. The Nasdaq recently granted SMCI an extension until February 25th to comply with filing requirements.

Earnings Miss and Guidance Cut

SMCI reported preliminary second-quarter earnings after Tuesday's market close, missing analysts' estimates. Revenue is expected to range from $5.6 billion to $5.7 billion, below the $5.95 billion consensus. The company also reduced its revenue guidance for the fiscal year 2025.

Investigations and Litigation

In August 2024, short-selling firm Hindenburg Research accused SMCI of accounting violations, leading to an investigation by the US Department of Justice. The company confirmed that it has received subpoenas from DOJ and SEC. Additionally, SMCI faces several securities lawsuits and derivative suits.

Stock Performance

SMCI shares soared ahead of its earnings announcement but later reversed direction, dropping over 9% by Tuesday's end. The stock had rallied nearly 60% in the previous week. Despite the earnings miss, SMCI stock rebounded, closing up on Tuesday.