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Super Micro Earnings: What To Look For From SMCI

SMCI Cover Image

Server solutions provider Super Micro (NASDAQ: SMCI) will be reporting earnings this Tuesday after market close. Here’s what investors should know.

Super Micro missed analysts’ revenue expectations by 13.2% last quarter, reporting revenues of $5.02 billion, down 15.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ operating income estimates.

Is Super Micro a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Super Micro’s revenue to grow 83.8% year on year to $10.44 billion, improving from the 54.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.49 per share.

Super Micro Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Super Micro has missed Wall Street’s revenue estimates six times over the last two years.

Looking at Super Micro’s peers in the it services & other tech segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Xerox delivered year-on-year revenue growth of 25.7%, missing analysts’ expectations by 0.9%, and Applied Digital reported revenues up 98.2%, topping estimates by 14.8%. Xerox traded down 7.6% following the results while Applied Digital was up 8.1%.

Read our full analysis of Xerox’s results here and Applied Digital’s results here.

Investors in the it services & other tech segment have had steady hands going into earnings, with share prices flat over the last month. Super Micro is down 3% during the same time and is heading into earnings with an average analyst price target of $46.71 (compared to the current share price of $29.15).

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