Super Micro Computer Faces SEC Deadline, Missed Earnings Estimates
Super Micro Computer (SMCI) stock fluctuated after market close Tuesday. The company announced plans to file delayed filings with the SEC by the Nasdaq's Feb. 25th deadline to avoid delisting.
Missed Earnings
Despite reporting preliminary second-quarter earnings, SMCI missed Wall Street estimates. Revenue is projected between $5.6 billion and $5.7 billion for the quarter ended Dec. 31st, below analyst expectations of $5.95 billion. The company also lowered its revenue guidance for fiscal 2025 to $23.5 billion-$25 billion, down from $26 billion-$30 billion.
Ongoing Controversies
SMCI's update follows a year of controversies, including a scathing report from Hindenburg Research alleging accounting violations. The US Department of Justice has reportedly launched an investigation into the company's practices. The firm also faced delayed annual and quarterly SEC filings, leading to a delisting risk from Nasdaq.
Extension Granted
Nasdaq recently granted SMCI an extension to file the filings by Feb. 25th. The company has appointed a new accountant and conducted an independent review that found no evidence of misconduct.
Share Price Fluctuations
SMCI stock had been rallying ahead of its Feb. 11th business update but reversed course Tuesday. Shares fell over 9% by the end of trading, reversing a week-long rally.
Subpoenas and Litigation
SMCI confirmed receiving subpoenas from the Department of Justice and SEC regarding allegations made in a short seller report published in August 2024. The company is cooperating with the requests. Additionally, SMCI faces several securities litigation complaints and derivative suits, which it considers meritless.