Server solutions provider Super Micro (NASDAQ: SMCI) will be reporting results this Tuesday after market close. Here’s what you need to know.
Super Micro beat analysts’ revenue expectations last quarter, reporting revenues of $12.68 billion, up 123% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EPS guidance for next quarter estimates.
Is Super Micro a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Super Micro’s revenue to grow 169% year on year, improving from the 19.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Super Micro has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Super Micro’s peers in the it services & other tech segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Diebold Nixdorf delivered year-on-year revenue growth of 5.6%, beating analysts’ expectations by 3.5%, and Xerox reported revenues up 26.7%, topping estimates by 6.6%. Diebold Nixdorf traded down 6.1% following the results while Xerox was up 69.6%.
Read our full analysis of Diebold Nixdorf’s results here and Xerox’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 10.1% on average over the last month. Super Micro is up 23.2% during the same time and is heading into earnings with an average analyst price target of $33.20 (compared to the current share price of $27.16).
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