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What's in Store for Super Micro Computer's (SMCI) Q1 Earnings?
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Super Micro Computer (SMCI - Free Report) is scheduled to report its first-quarter fiscal 2024 results on Nov 1.
For the fiscal first quarter, SMCI expects revenues between $1.9 billion and $2.2 billion. The Zacks Consensus Estimate for sales is pegged at $2.07 billion, indicating growth of 11.6% from the year-ago fiscal quarter’s reported value.
SMCI anticipates non-GAAP earnings between $2.75 and $3.5 per share. The consensus mark for earnings is pegged at $3.19 per share, indicating a 6.7% decline from the figure reported in the year-ago quarter.
SMCI’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 3.26%.
Let’s see how things have shaped up for this announcement.
SMCI's diversified AI portfolio, infrastructure readiness and ability to deliver products in a timely manner are expected to have benefited its top-line growth in the first quarter of fiscal 2024.
Further, the company’s focus on AI workloads, 5G telco applications and accelerated storage systems is likely to have aided its performance in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter fiscal 2024 Server and Storage Systems revenues is pegged at $1.91 billion, indicating growth of 11.7% on a year-over-year basis.
Moreover, SMCI’s robust business model, covering a wide range of AI, core computing, storage, and Internet of Things applications, is likely to have boosted its performance in the quarter under review.
Growing momentum among customers worldwide, including top-tier data centers, emerging Cloud Service Providers and enterprise AI build-outs, is expected to have aided the to-be-reported quarter’s performance.
Also, the strong demand for complete systems and rack-scale total IT Solutions is expected to have bolstered SMCI’s revenues during the to-be-reported quarter.
Additionally, increasing design wins, particularly across enterprise/channel, Large Datacenters, emerging AI/ML, and 5G Telco and OEM vertical markets, are likely to have aided the upcoming quarterly results.
However, global macroeconomic uncertainties and growing operating expenses are likely to have been major headwinds.
Further, supply-chain constraints due to lower inventory and higher accounts payable from backend-loaded shipments are expected to have hurt SMCI’s profitability in the quarter under review.
What Our Model Says
The Zacks model predicts that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Super Micro Computer has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for FSLY’s earnings is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year period’s reported figure.
Image: Bigstock
What's in Store for Super Micro Computer's (SMCI) Q1 Earnings?
Super Micro Computer (SMCI - Free Report) is scheduled to report its first-quarter fiscal 2024 results on Nov 1.
For the fiscal first quarter, SMCI expects revenues between $1.9 billion and $2.2 billion. The Zacks Consensus Estimate for sales is pegged at $2.07 billion, indicating growth of 11.6% from the year-ago fiscal quarter’s reported value.
SMCI anticipates non-GAAP earnings between $2.75 and $3.5 per share. The consensus mark for earnings is pegged at $3.19 per share, indicating a 6.7% decline from the figure reported in the year-ago quarter.
SMCI’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, the average surprise being 3.26%.
Let’s see how things have shaped up for this announcement.
Super Micro Computer, Inc. Price and EPS Surprise
Super Micro Computer, Inc. price-eps-surprise | Super Micro Computer, Inc. Quote
Key Factors to Note
SMCI's diversified AI portfolio, infrastructure readiness and ability to deliver products in a timely manner are expected to have benefited its top-line growth in the first quarter of fiscal 2024.
Further, the company’s focus on AI workloads, 5G telco applications and accelerated storage systems is likely to have aided its performance in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter fiscal 2024 Server and Storage Systems revenues is pegged at $1.91 billion, indicating growth of 11.7% on a year-over-year basis.
Moreover, SMCI’s robust business model, covering a wide range of AI, core computing, storage, and Internet of Things applications, is likely to have boosted its performance in the quarter under review.
Growing momentum among customers worldwide, including top-tier data centers, emerging Cloud Service Providers and enterprise AI build-outs, is expected to have aided the to-be-reported quarter’s performance.
Also, the strong demand for complete systems and rack-scale total IT Solutions is expected to have bolstered SMCI’s revenues during the to-be-reported quarter.
Additionally, increasing design wins, particularly across enterprise/channel, Large Datacenters, emerging AI/ML, and 5G Telco and OEM vertical markets, are likely to have aided the upcoming quarterly results.
However, global macroeconomic uncertainties and growing operating expenses are likely to have been major headwinds.
Further, supply-chain constraints due to lower inventory and higher accounts payable from backend-loaded shipments are expected to have hurt SMCI’s profitability in the quarter under review.
What Our Model Says
The Zacks model predicts that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Super Micro Computer has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.
GoDaddy (GDDY - Free Report) has an Earnings ESP of +14.09% and a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
GoDaddy is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for GDDY’s earnings is pegged at 71 cents per share, suggesting growth of 12.7% from the prior-year period’s reported figure.
BILL Holdings (BILL - Free Report) has an Earnings ESP of +4.42% and a Zacks Rank #3 at present
BILL Holdings is set to report first-quarter fiscal 2024 results on Nov 2. The Zacks Consensus Estimate for BILL’s earnings is pegged at 50 cents per share, indicating an increase from the prior-year quarter’s reported figure of 14 cents.
Fastly (FSLY - Free Report) has an Earnings ESP of +17.24% and a Zacks Rank #2 at present.
Fastly is set to report third-quarter 2023 results on Nov 1. The Zacks Consensus Estimate for FSLY’s earnings is pegged at a loss of 7 cents per share, suggesting growth of 50% from the prior-year period’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.