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Super Micro (SMCI) to Post Q1 Earnings: What's in the Offing?
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Super Micro Computer (SMCI - Free Report) is scheduled to report first-quarter fiscal 2023 results on Nov 1.
For the fiscal first quarter, SMCI raised guidance for revenues to the range of $1.78-$1.82 billion from the prior range of $1.52-$1.62 billion. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, indicating growth of 74.3% from the year-ago quarter’s reported value.
The company also raised the earnings per share guidance to the $3.05-$3.20 band from the prior projection of $2.07-$2.32. The consensus mark for earnings is pegged at $2.66 per share, indicating a jump from the previous-year quarter’s reported figure of 58 cents. The consensus mark has moved 20.9% north in the past 7 days.
Super Micro Computer’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 20.3%.
Growing customer design wins on the back of robust IT solutions are expected to have benefited SMCI’s performance in the fiscal first quarter.
During the third quarter, SMCI expanded its IT solutions by introducing Android Cloud Gaming and Media Processing & Delivery solutions based on the Intel Data Center GPU. The impact of these solutions is likely to get reflected in the upcoming quarterly results.
Increasing adoption of green computing solutions, and compute and AI platforms is likely to have driven SMCI’s performance in the quarter to be reported.
Super Micro Computer is gaining momentum in the U.S. market, a trend that most likely continued in the quarter under review.
Strength in super cloud composer, orchestrator, security and other products might have helped SMCI attract more customers in the fiscal first quarter.
Growing investment in data-center management software stack is likely to have benefited its performance in the to-be-reported quarter.
Super Micro Computer’s strong position in the leading-edge vertical solutions and OEM, Appliance and Large DC segments is expected to have remained a tailwind.
However, supply-chain challenges due to the ongoing coronavirus pandemic are likely to have continued impacting Super Micro Computer’s financial performance during the fiscal first quarter.
Macroeconomic headwinds, logistic issues and mounting expenses are expected to have hurt SMCI’s profitability in the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Super Micro Computer this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Super Micro Computer has an Earnings ESP of 0.00% and a Zacks Rank of 1 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
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Super Micro (SMCI) to Post Q1 Earnings: What's in the Offing?
Super Micro Computer (SMCI - Free Report) is scheduled to report first-quarter fiscal 2023 results on Nov 1.
For the fiscal first quarter, SMCI raised guidance for revenues to the range of $1.78-$1.82 billion from the prior range of $1.52-$1.62 billion. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion, indicating growth of 74.3% from the year-ago quarter’s reported value.
The company also raised the earnings per share guidance to the $3.05-$3.20 band from the prior projection of $2.07-$2.32. The consensus mark for earnings is pegged at $2.66 per share, indicating a jump from the previous-year quarter’s reported figure of 58 cents. The consensus mark has moved 20.9% north in the past 7 days.
Super Micro Computer’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 20.3%.
Super Micro Computer, Inc. Price and EPS Surprise
Super Micro Computer, Inc. price-eps-surprise | Super Micro Computer, Inc. Quote
Key Factors to Note
Growing customer design wins on the back of robust IT solutions are expected to have benefited SMCI’s performance in the fiscal first quarter.
During the third quarter, SMCI expanded its IT solutions by introducing Android Cloud Gaming and Media Processing & Delivery solutions based on the Intel Data Center GPU. The impact of these solutions is likely to get reflected in the upcoming quarterly results.
Increasing adoption of green computing solutions, and compute and AI platforms is likely to have driven SMCI’s performance in the quarter to be reported.
Super Micro Computer is gaining momentum in the U.S. market, a trend that most likely continued in the quarter under review.
Strength in super cloud composer, orchestrator, security and other products might have helped SMCI attract more customers in the fiscal first quarter.
Growing investment in data-center management software stack is likely to have benefited its performance in the to-be-reported quarter.
Super Micro Computer’s strong position in the leading-edge vertical solutions and OEM, Appliance and Large DC segments is expected to have remained a tailwind.
However, supply-chain challenges due to the ongoing coronavirus pandemic are likely to have continued impacting Super Micro Computer’s financial performance during the fiscal first quarter.
Macroeconomic headwinds, logistic issues and mounting expenses are expected to have hurt SMCI’s profitability in the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Super Micro Computer this time around. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Super Micro Computer has an Earnings ESP of 0.00% and a Zacks Rank of 1 at present.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Fortinet (FTNT - Free Report) has an Earnings ESP of +0.92% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fortinet is set to report third-quarter 2022 results on Nov 2. The Zacks Consensus Estimate for FTNT’s earnings is pegged at 27 cents per share, suggesting an increase of 35% from the prior-year period’s reported figure.
The Trade Desk (TTD - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 2 at present.
The Trade Desk is scheduled to release third-quarter 2022 results on Nov 14. The Zacks Consensus Estimate for TTD’s earnings is pegged at 24 cents per share, suggesting an increase of 33.3% from the prior-year quarter’s reported figure.
Tencent Music Entertainment Group (TME - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 2 at present.
Tencent Music is scheduled to release third-quarter 2022 results on Nov 15. The Zacks Consensus Estimate for TME’s earnings is pegged at 11 cents per share, suggesting an increase of 22.2% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.