Bear of the Day: Super Micro (SMCI)

Core Viewpoint - Super Micro Computer (SMCI) is currently facing scrutiny due to investigations into its financial statements, leading to preliminary results for Q1 fiscal 2025 being announced without full guidance from management [1][2]. Group 1: Financial Reporting and Investigations - SMCI received an exception from Nasdaq, allowing until February 25, 2025, to file its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and its Quarterly Report on Form 10-Q for the period ended September 30, 2024 [2]. - Analysts have lowered their EPS estimates for SMCI for the current and next fiscal years due to the lack of guidance and preliminary results [2]. Group 2: Stock Performance and Analyst Projections - Despite the pressure on shares in the second half of the year due to investigations, analysts maintain projections for over 60% topline growth, estimating revenue to reach $24 billion [3]. - The consensus EPS for fiscal 2025 has decreased by 7.3%, from $3.41 to $3.16, while the fiscal 2026 EPS consensus dropped by 6.3% to $3.84 [3]. Group 3: Growth Potential - The company still shows significant annual growth rates of 43% and 21.5% for the upcoming fiscal years, indicating that the growth narrative remains intact despite the stock's decline to under 1X sales and 10X earnings [4][5].