Should You Buy Super Micro Computer Stock Before Q1 Earnings?
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Super Micro Computer, Inc. SMCI is scheduled to report first-quarter fiscal 2025 results on Nov. 5.
For the fiscal first quarter, the company expects revenues between $6 billion and $7 billion. The Zacks Consensus Estimate is pegged at $6.52 billion, indicating growth of 207.5% from the year-ago quarter’s reported value.
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Super Micro Computer expects non-GAAP earnings per share between 67 cents and 83 cents. The Zacks Consensus Estimate for earnings is pegged at 75 cents per share, suggesting a rise of 120.6% from the year-ago reported figure. The figure has been unchanged over the past 60 days.
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SMCI has an impressive earnings surprise history. Its earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 0.6%.
Super Micro Computer, Inc. Price and EPS Surprise
Super Micro Computer, Inc. price-eps-surprise | Super Micro Computer, Inc. Quote
Earnings Whispers for Super Micro Computer
Our proven model does not conclusively predict an earnings beat for Super Micro Computer this time. 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, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Though SMCI carries a Zacks Rank #2, it has an Earnings ESP of -0.11% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Factors Likely to Influence SMCI’s Quarterly Performance
Super Micro Computer has been capitalizing on the current artificial intelligence (AI) boom due to the robust demand for its server and storage solutions. Growing original equipment manufacturer (OEM) component orders have been leading to a spike in the uptake of its AI servers. This is expected to have been a tailwind for the company in the quarter under review.
SMCI’s strong investments in high-quality, optimized Direct Liquid Cooling solutions for high-end applications are anticipated to have benefited the quarterly performance. The company’s strengthening manufacturing capabilities to support the growth of AI and enterprise rack-scale liquid-cooled solutions and capitalize on the rising demand for liquid-cooled data centers are likely to have been upsides.
Super Micro Computer’s solid traction across top-tier data centers, emerging cloud service providers, enterprise/channel and edge/IoT/telco customers due to its robust next-generation AI and CPU platforms are expected to have been upsides. SMCI’s robust building block architecture and operation/production automation systems, offering optimized rack-scale solutions with time-to-market and quality advantages to its customers, are expected to have been other tailwinds.