Dell Rival Super Micro Seesaws on Earnings Miss, Nasdaq Filing Deadline
Super Micro Computer (SMCI) shares experienced volatility after the market close on Tuesday.
Delayed Filings and Nasdaq Deadline
SMCI announced it expects to submit delayed filings to the SEC before the Nasdaq's deadline of February 25th to avoid delisting. The company had postponed filings following allegations of accounting violations in a report by Hindenburg Research.
Preliminary Earnings Report
Super Micro's preliminary second quarter earnings fell short of Wall Street estimates. Revenue is projected between $5.6 billion and $5.7 billion, below the expected $5.95 billion. The company also reduced its revenue guidance for fiscal year 2025 to $23.5-$25 billion, down from the previous range of $26-$30 billion.
Share Price Movement
SMCI shares initially dropped 19% after earnings, but quickly reversed course. They closed Tuesday up over 3%.
Ongoing Controversies
Super Micro faces ongoing controversies stemming from the Hindenburg report. The US Department of Justice is reportedly investigating its accounting practices. The company's accountant has resigned, and recent quarterly and annual SEC filings were delayed, putting its Nasdaq listing at risk.
Nasdaq Extension and Independent Review
The Nasdaq recently granted SMCI an extension to file by February 25th. The company has hired a new accountant and claims an independent review found no misconduct.
Legal Challenges
Super Micro discloses that it is facing several securities litigation complaints and derivative suits, but believes they lack merit.
Analyst Sentiment
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