After markets closed yesterday, Super Micro Computer (SMCI) announced preliminary fiscal second-quarter results. Not only is its outlook below estimates, but the firm offered no date on when it would file its critical 10-K report.
SMCI reported preliminary revenue in the range of $6 billion – $7 billion. Analysts expected nearly $300 million more. This suggests that SMCI’s customers are shifting to other suppliers as a precaution. The firm’s auditor resigned last week, creating panic for SMCI. Watch SMCI fall by around 15% today.
In Canada, BCE (BCE), one of the telecom giants along with Telus (TU) and Rogers Communications (RCI), cut some of its stock losses. On Nov. 4, BCE stock fell from $32 to below $29. It will acquire Ziply Fiber, spending $3.65 billion.
S&P 500 said that the proposed transaction is neutral to the firm’s credit quality. It has a BBB/stable outlook rating. The ratings agency said that the purchase is consistent with BCE’s growth strategy. Still, BCE will suspend its dividend growth next year.
Cliff Natural Resources (CLF) lost 11.44%. The steel firm’s results are troubling after it overleveraged its balance sheet by acquiring Stelco.
Boeing (BA) pulled back after its workers agreed to the generous contract offer. 59% of the union members voted in favor of the deal. They will get a 38% pay increase over four years, along with better retirement contributions. Boeing has an operating cost model that is too high.
BA stock is not attractive.