Server solutions provider Super Micro (NASDAQ: SMCI) will be reporting earnings this Tuesday after market hours. Here’s what to look for.
Super Micro missed analysts’ revenue expectations last quarter, reporting revenues of $11.12 billion, up 93.2% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive 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 235% year on year, a reversal from the 15.5% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings.
Looking at Super Micro’s peers in the it services & other tech segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Xerox’s revenues decreased 4.7% year on year, meeting analysts’ expectations, and Diebold Nixdorf reported revenues up 4.8%, topping estimates by 1.2%. Xerox traded down 47.7% following the results while Diebold Nixdorf was also down 11.3%.
Read our full analysis of Xerox’s results here and Diebold Nixdorf’s results here.
Investors in the it services & other tech segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Super Micro is down 23.5% during the same time and is heading into earnings with an average analyst price target of $43.27 (compared to the current share price of $33.03).
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