Server solutions provider Super Micro (NASDAQ: SMCI) will be reporting results this Tuesday afternoon. Here’s what you need to know.
Super Micro missed analysts’ revenue expectations last quarter, reporting revenues of $10.24 billion, up 123% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EPS guidance for next quarter 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, the market is expecting Super Micro’s revenue to grow 101% year on year, improving from the 7.5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Super Micro has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Super Micro’s peers in the hardware & infrastructure segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Xerox delivered year-on-year revenue growth of 22%, beating analysts’ expectations by 1.2%, and IonQ reported revenues up 287%, topping estimates by 20.4%. Xerox traded up 11.7% following the results while IonQ’s stock price was unchanged.
Read our full analysis of Xerox’s results here and IonQ’s results here.
There has been positive sentiment among investors in the hardware & infrastructure segment, with share prices up 7.2% on average over the last month. Super Micro is up 13.4% during the same time and is heading into earnings with an average analyst price target of $37.81 (compared to the current share price of $31.37).
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