Super Micro Computer Stock Climbs Post Earnings Update, Aims for Ambitious Revenue Goal
Super Micro Computer (SMCI) shares surged in premarket trading on Wednesday, driven by positive developments regarding the company's Nasdaq delisting status and a bold revenue target.
Nasdaq Deadline Averted
Super Micro announced that it intends to submit delayed financial filings to the SEC by February 25th, meeting the Nasdaq's deadline to avoid delisting. The company had previously delayed filings following allegations of accounting violations by short-seller Hindenburg Research.
Ambitious Revenue Goal Set
CEO Charles Liang revealed during an investor call that Super Micro aims to achieve $40 billion in revenue for fiscal year 2026. This target exceeds Wall Street analysts' current estimates of $30 billion.
Earnings Miss and Guidance Lowered
Despite meeting the Nasdaq deadline, Super Micro's preliminary second-quarter earnings for fiscal 2025 fell short of expectations. The company now anticipates revenue of $5.6-$5.7 billion, below analysts' estimates of $5.95 billion. Additionally, revenue guidance for fiscal year 2025 was revised down to $23.5-$25 billion from $26-$30 billion previously.
Ongoing Investigations and Litigation
Super Micro remains under investigation by the US Department of Justice and SEC. The company has received subpoenas and faces multiple securities lawsuits and derivative suits, which it believes are without merit.
New Accountant and Product Development
Super Micro has hired a new accountant and states that an independent review of its business found no evidence of misconduct. The company is also developing a "confidential product" to support its ambitious revenue goal.
Market Reaction
Super Micro shares initially fell after the earnings release on Tuesday but later reversed course. The stock has experienced volatility in recent months, including a sharp rally ahead of its business update and a subsequent decline.