Super Micro shares drop 22% after missing financial expectations and facing delisting concerns

From CNBC: 2024-11-06 12:21:37

Super Micro Computer Inc. CEO, Charles Liang, presents at the Computex conference in Taipei, Taiwan. Super Micro shares plummeted 22% after releasing unaudited financials and failing to address concerns about its Nasdaq listing. The stock is down 82% from its March high, losing $57 billion in market cap.

Super Micro faces delisting by Nasdaq for not filing audited financials since May. The company’s auditor Ernst & Young resigned, leading to concerns about accounting irregularities and possible violations of export controls. The company is actively seeking a new auditor but hasn’t filed annual financials yet.

Mizuho analysts suspended coverage of Super Micro due to lack of detailed financials. Wedbush analysts, with a hold rating, said the report raised more questions than answers. Super Micro aims to resolve its late filing status and become current with financial reporting, despite the challenges ahead.

Super Micro reported net sales between $5.9 billion to $6 billion for the quarter ending Sept. 30, below analyst expectations. Revenue forecast for December is $5.5 billion to $6.1 billion, with adjusted earnings per share of 56 cents to 65 cents, falling short of estimates. The company seeks to strengthen internal governance to maintain its Nasdaq listing.



Read more at CNBC:: Super Micro shares plummet after Q4 update raises concerns