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What's in Store for Super Micro Computer's (SMCI) Q2 Earnings?
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Super Micro Computer (SMCI - Free Report) is scheduled to report its second-quarter fiscal 2024 results on Jan 29.
For the fiscal second quarter, SMCI expects revenues between $3.6 billion and $3.65 billion. The Zacks Consensus Estimate for sales is pegged at $3.21 billion, indicating growth of 78.3% from the year-ago fiscal quarter’s reported value.
SMCI anticipates non-GAAP earnings between $5.40 and $5.55 per share. The consensus mark for earnings is pegged at $5.07 per share, indicating 55.5% growth from the figure reported in the year-ago quarter.
SMCI’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters but missed the mark once, the average surprise being 2.8%.
Let’s see how things have shaped up for this announcement.
SMCI’s diverse business model, which encompasses Graphics Processing Units, AI, core computing, storage, 5G telco, edge and Internet of Things solutions, is expected to have benefited its top-line growth in the second quarter of fiscal 2024.
The company’s growing momentum in the emerging markets on the back of its expanding AI-backed software solutions is expected to have aided its performance in the to-be-reported quarter.
Strength in data-center technology solutions and product line upgrades are likely to have boosted its performance in the quarter under review.
Also, the strong demand for complete systems, storage and rack-scale total IT Solutions is expected to have bolstered SMCI’s Server and Storage Systems revenues during the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter fiscal 2024 Server and Storage Systems revenues is pegged at $2.99 billion, indicating growth of 79.9% on a year-over-year basis.
The company’s transition of manufacturing capabilities to Malaysia and Taiwan, resulting in high volume scale and improved cost structure, is likely to have aided its top-line growth in the second quarter of fiscal 2024.
However, global macro-economic uncertainties and growing competitive scenario are likely to have been major headwinds for the company’s performance in the to-be-reported quarter.
Further, continuing supply-chain constraints, especially for leading AI platforms, are expected to have hurt SMCI’s profitability in the quarter under review.
What Our Model Says
Per the Zacks model, 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. That’s exactly the case here.
Super Micro Computer has an Earnings ESP of +8.19% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering from the same space, as our model shows that these, too, have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
A. O. Smith (AOS - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank #2 at present.
A. O. Smith is set to report its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for AOS’s earnings is pegged at 95 cents per share, suggesting growth of 10.5% from the prior-year period’s reported figure.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, reflecting growth of 54.3% from the year-ago quarter.
Image: Bigstock
What's in Store for Super Micro Computer's (SMCI) Q2 Earnings?
Super Micro Computer (SMCI - Free Report) is scheduled to report its second-quarter fiscal 2024 results on Jan 29.
For the fiscal second quarter, SMCI expects revenues between $3.6 billion and $3.65 billion. The Zacks Consensus Estimate for sales is pegged at $3.21 billion, indicating growth of 78.3% from the year-ago fiscal quarter’s reported value.
SMCI anticipates non-GAAP earnings between $5.40 and $5.55 per share. The consensus mark for earnings is pegged at $5.07 per share, indicating 55.5% growth from the figure reported in the year-ago quarter.
SMCI’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters but missed the mark once, the average surprise being 2.8%.
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 diverse business model, which encompasses Graphics Processing Units, AI, core computing, storage, 5G telco, edge and Internet of Things solutions, is expected to have benefited its top-line growth in the second quarter of fiscal 2024.
The company’s growing momentum in the emerging markets on the back of its expanding AI-backed software solutions is expected to have aided its performance in the to-be-reported quarter.
Strength in data-center technology solutions and product line upgrades are likely to have boosted its performance in the quarter under review.
Also, the strong demand for complete systems, storage and rack-scale total IT Solutions is expected to have bolstered SMCI’s Server and Storage Systems revenues during the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter fiscal 2024 Server and Storage Systems revenues is pegged at $2.99 billion, indicating growth of 79.9% on a year-over-year basis.
The company’s transition of manufacturing capabilities to Malaysia and Taiwan, resulting in high volume scale and improved cost structure, is likely to have aided its top-line growth in the second quarter of fiscal 2024.
However, global macro-economic uncertainties and growing competitive scenario are likely to have been major headwinds for the company’s performance in the to-be-reported quarter.
Further, continuing supply-chain constraints, especially for leading AI platforms, are expected to have hurt SMCI’s profitability in the quarter under review.
What Our Model Says
Per the Zacks model, 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. That’s exactly the case here.
Super Micro Computer has an Earnings ESP of +8.19% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other companies worth considering from the same space, as our model shows that these, too, have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.
Apple (AAPL - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
A. O. Smith (AOS - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank #2 at present.
A. O. Smith is set to report its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for AOS’s earnings is pegged at 95 cents per share, suggesting growth of 10.5% from the prior-year period’s reported figure.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, reflecting growth of 54.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.