Super Micro Computer ( SMCI Quick Quote SMCI - Free Report) is scheduled to report its fiscal third-quarter 2023 results on May 2. Per the preliminary financial information announced by SMCI, fiscal third-quarter’s revenues were $1.28 billion. The Zacks Consensus Estimate for sales is pegged at $1.38 billion, indicating growth of 1.4% from the year-ago fiscal quarter’s reported value. The consensus mark for earnings is pegged at $1.68 per share, indicating growth of 8.4% from the year-ago fiscal quarter’s reported value. The consensus mark has decreased by 16.8% in the past seven days. SMCI’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 7.8%. Key Factors to Note
SMCI’s strength in new edge platforms, growing traction among customers across the world and increasing design wins are likely to have aided its performance during the fiscal third quarter.
Further, an expanding portfolio and deepening focus on developing products ideal for AI workloads, 5G telco applications and accelerated storage systems are likely to have benefited SMCI’s performance in the quarter under review. Additionally, increasing demand for the energy-efficient rack-scale plug-n-play Total IT Solutions and the company’s green computing methodology is expected to have boosted SMCI’s revenues during the to-be-reported quarter. Growing investments in data center management software, switch and service are likely to have benefited its performance in the to-be-reported quarter. Additionally, SMCI’s solid momentum across more Large Datacenters, Enterprise, AI/ML, Storage, Cloud, 5G/Telco and IOT markets are likely to have contributed well. Moreover, cost efficiencies from the online B2C and B2B programs are likely to have contributed as well. This apart, the company’s launch of a new product portfolio featuring recently launched Intel 4th Gen Scalable Xeon processors (Sapphire Rapids), 4th Gen AMD EPYC (Genoa) processors and NVIDIA H100 (Hopper) GPUs is expected to have boosted its revenues in the to-be-reported quarter. The wide adoption of SMCI’s GPU/AI systems and rack-scale Total IT Solutions with the new generation of products is also likely to have aided its performance during the fiscal third quarter. However, macroeconomic headwinds, supply-chain challenges 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 SMCI this time around. 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. 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 -20.00% and a Zacks Rank #3 at present. Stocks to Consider
Here are some stocks worth considering as our model shows that these also have the right combination of elements to beat on earnings this season.
DigitalOcean ( DOCN Quick Quote DOCN - Free Report) has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. DOCN is scheduled to release first-quarter 2023 results on May 9. The Zacks Consensus Estimate for DOCN’s earnings is pegged at 29 cents per share, suggesting a jump from 7 cents per share reported in the prior-year quarter. BILL Holdings, Inc. ( BILL Quick Quote BILL - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3 at present. BILL Holdings is set to report third-quarter fiscal 2023 results on May 4. The Zacks Consensus Estimate for BILL’s earnings is pegged at 24 cents per share. The company incurred a loss of 8 cents per share in the year-ago quarter. Ceridian HCM ( CDAY Quick Quote CDAY - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #3 at present. CDAY is scheduled to report first-quarter 2023 results on May 3. The Zacks Consensus Estimate for CDAY’s earnings is pegged at 33 cents per share, suggesting an increase of 153.8% from the prior-year quarter’s reported figure. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.