Server solutions provider Super Micro (NASDAQ: SMCI) will be reporting results tomorrow after market hours. Here’s what investors should know.
Super Micro missed analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $5.68 billion, up 54.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ operating income estimates.
Is Super Micro a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Super Micro’s revenue to grow 25.7% year on year to $4.84 billion, slowing from the 200% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Analysts covering the company have generally 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 four 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. Xerox’s revenues decreased 3% year on year, meeting analysts’ expectations, and Grid Dynamics reported revenues up 25.8%, topping estimates by 2%. Xerox traded up 9.8% following the results while Grid Dynamics was down 3.1%.
Read our full analysis of Xerox’s results here and Grid Dynamics’s results here.
There has been positive sentiment among investors in the it services & other tech segment, with share prices up 11.7% on average over the last month. Super Micro is up 1.9% during the same time and is heading into earnings with an average analyst price target of $48.76 (compared to the current share price of $33.63).
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