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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 fiscal second-quarter 2023 results on Jan 31.

For the fiscal second quarter, SMCI expects revenues between $1.77 billion and $1.8 billion. The Zacks Consensus Estimate for sales is pegged at $1.77 billion, indicating growth of 50.8% from the year-ago fiscal quarter’s reported value.

SMCI anticipates non-GAAP earnings between $3.07 and $3.22 per share. The consensus mark for earnings is pegged at $2.95 per share, indicating a significant jump from the 88 cents per share reported in the year-ago quarter.

SMCI’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average being 9.42%.

Super Micro Computer, Inc. Price and EPS Surprise

 

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 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 second quarter.

Further, expanding its portfolio and deepening focus toward developing products ideal for AI workloads, 5G telco applications and accelerated storage systems is likely to have benefited SMCI’s performance in the quarter under review.

Additionally, increasing demand for rack-scale Total IT Solutions and accelerated computing platforms is expected to have boosted SMCI’s total addressable market size during the to-be-reported quarter.

Moreover, the company’s efforts to combine its Building Block solution, advanced software, and robust security and service features are likely to have driven the momentum of its Total IT Solutions among the customers in the fiscal second quarter.

Additionally, SMCI’s solid momentum across accelerated GPU/AI workloads, software-defined storage and networking, public and hybrid cloud and 5G/Edge/IoT Platforms are likely to have contributed well.

Growing investments in data center management software, security features, cloud stack and service, are likely to have benefited its performance in the to-be-reported quarter.

However, supply-chain disruptions led by the coronavirus pandemic are likely to have continued impacting the company’s financial performance during the fiscal second quarter negatively.

What Our Model Says

Our proven model predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SMCI has an Earnings ESP of +6.78% and a Zacks Rank #2 at present.

Other Stocks to Consider

Here are some other stocks worth considering, as our model shows that these too have the right combination of elements to beat on earnings this season.

AMETEK (AME - Free Report) has an Earnings ESP of +0.68% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMETEK is scheduled to release its fourth-quarter 2022 results on Feb 2. The Zacks Consensus Estimate for AME earnings is pegged at $1.47 per share, suggesting an increase of 7.3% from the prior-year quarter’s reported figure.

Endava (DAVA - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.

Endava is set to report its second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year period’s reported figure.

Analog Devices (ADI - Free Report) has an Earnings ESP of +1.13% and a Zacks Rank #3 at present

Analog Devices is scheduled to release its first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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