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What’s in Store for Super Micro Computer’s (SMCI) Q2 Earnings?

Super Micro Computer’s (SMCI) Q2 Earnings Preview

Super Micro Computer to Announce Q2 Earnings

Super Micro Computer (SMCI) is gearing up to reveal its financial performance for the second quarter of fiscal 2024, with the announcement scheduled for Jan 29.

The company expects revenues in the range of $3.6 billion to $3.65 billion for the second quarter. The Zacks Consensus Estimate for sales is set at $3.21 billion, suggesting a substantial 78.3% growth from the previous year’s fiscal quarter.

Anticipated non-GAAP earnings fall between $5.40 and $5.55 per share. The consensus estimate for earnings sits at $5.07 per share, indicating a robust 55.5% increase from the figure reported in the year-ago quarter.

While SMCI’s earnings have beaten the Zacks Consensus Estimate in three out of the last four quarters, the average surprise has been 2.8%.

Factors Impacting SMCI’s Performance

SMCI’s diversified business model, spanning Graphics Processing Units, AI, core computing, storage, 5G telco, edge and Internet of Things solutions, is projected to have driven its top-line growth in the second quarter of fiscal 2024.

The company’s expanding AI-backed software solutions and growing momentum in emerging markets are likely to have contributed to its performance.

Furthermore, strength in data-center technology solutions, product line upgrades, and strong demand for complete systems, storage and rack-scale total IT Solutions are expected to have bolstered SMCI’s Server and Storage Systems revenues.

However, global macro-economic uncertainties, intense competition, and supply-chain constraints, especially for leading AI platforms, are expected to have posed challenges for SMCI in the to-be-reported quarter.

See also Financial Analysis Investment Insights: (MNDY)

Earnings ESP and Comparison with Peers

According to the Zacks model, Super Micro Computer has an Earnings ESP of +8.19% and a Zacks Rank #2, indicating favorable odds of an earnings beat.

When compared to its industry peers, including Apple (AAPL), A. O. Smith (AOS), and Alphabet (GOOGL), SMCI appears to have a competitive edge in terms of projected earnings performance.

Other Key Players in the Industry

Apple (AAPL), with an Earnings ESP of +2.13% and a Zacks Rank #2, is set to release its first-quarter fiscal 2024 results on Feb 1.

A. O. Smith (AOS) has an Earnings ESP of +3.80% and a Zacks Rank #2, and is scheduled to report its fourth-quarter 2023 results on Jan 30.

Alphabet (GOOGL) has an Earnings ESP of +2.26% and a Zacks Rank #3, with its fourth-quarter 2023 results also set to be announced on Jan 30.

Stay informed about upcoming earnings announcements with the Zacks Earnings Calendar.

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