Super Micro Stock (NASDAQ: SMCI) Making Moves Ahead of Earnings – What To Expect

Super Micro Computer's stock price (NASDAQ:SMCI) is trading up more than 7% today, to bring YTD gains to ~30%. Holders of the stock have been on a roller coaster ride over the past year, experiencing significant ups and downs for a variety of reasons.

Markets are now tuned in, eagerly awaiting a crucial earnings release after the bell tomorrow (Feb 11th) that we can expect to hold some sway over short term sentiment. We take a look at what analysts are expecting after the earlier gap in reporting.

EPS is expected to come in at $0.61, on the back of $5.77 billion in revenue.

Looking back into previous periods, the company's revenue saw remarkable growth, achieving triple-digit percentages early last year. Consequently, its stocks surged 188% in the first half of the year,. However, this momentum was disrupted by a report from Hindenburg Research. The report highlighted “glaring accounting red flags,” which raised serious concerns about the company's financial practices, leading to a decline in its share price.

Adding to investor anxiety, Super Micro announced delays in filing its 10-K annual report. This action triggered further scrutiny and resulted in a non-compliance letter from Nasdaq. Super Micro has set a new deadline of February 25 to submit its audited 10-K and 10-Q reports, which will be crucial for evaluating the company’s financial health going forward.

Despite these setbacks, a special committee formed to investigate the company's reporting practices found no evidence of misconduct, nor was there a need for any restatement of financials. Investors are hopeful that Super Micro's strategies, including a business update scheduled for February 11, will provide renewed confidence. The company is expected to discuss its growth in direct liquid cooling orders and the impact of Nvidia's new Blackwell architecture.

Now with much of this behind it, the company will be hoping to focus on the here-and-now, along with the future plans.

Analysts consensus target of $40.79 is close by, but the view of the street is one that is in conflict. With a low of $15 set against a high of $93, the bulls and bears see SMCI very differently at this stage. Whether the latest report, and outlook can help shift sentiment either way will be an interesting narrative.