Why Super Micro Computer’s Stock Is Plunging After Its Business Update Tuesday
Super Micro Computer shares plunged in extended trading Tuesday after the company said it’s unable to predict when it will file its delayed annual report for 2024, exacerbating delisting worries.
The server maker also reported preliminary revenue figures for the fiscal first quarter that missed analysts’ projections.
Tuesday’s update comes after shares tumbled last week in the wake of EY’s resignation as the company’s auditor, and follows months of speculation about the company’s accounting practices.
Super Micro Computer (SMCI) shares plunged in extended trading Tuesday after the server maker said it “remains unable at this time to predict” when it will file its delayed annual report for 2024, exacerbating delisting worries.
The company previously disclosed it received a letter from the Nasdaq on Sept. 17 warning it is not in compliance with the exchange’s rules, which require “timely filing” of reports. The company was given 60 days to file or submit a plan, which would be until Nov. 16.
Shares of Super Micro Computer plummeted over 15% in extended trading Tuesday following the news.
Super Micro Computer also reported preliminary revenue figures for the fiscal first quarter that missed analysts’ projections at $5.9 billion to $6 billion, down from the company’s previously guided range of $6 billion to $7 billion. Super Micro Computer said it expects earnings per share (EPS) of 68 cents to 70 cents, compared to 27 cents a year earlier and slightly above estimates. The company underwent a stock split in September.
Tuesday’s update comes after shares tumbled last week in the wake of accounting firm EY’s resignation as the company’s auditor, and follows months of speculation about the company’s accounting practices. EY said it was “unwilling to be associated with the financial statements prepared by management,” about a month after reports emerged that the Department of Justice had opened an investigation into the company.
CORRECTION—Nov. 5, 2024: This article has been corrected to reflect Super Micro Computer reported earnings of 27 cents per share in the fiscal first quarter of 2024. The company underwent a stock split in September.
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