Dear SMCI Stock Fans, Get Ready for Next Week

  • Super Micro Computer (SMCI) could preannounce its earnings next week, according to Wells Fargo.
  • Analysts expect revenue to grow by 142.28% to $5.29 billion.
  • SMCI stock is up by over 210% this year.
SMCI stock - Dear SMCI Stock Fans, Get Ready for Next Week

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Shares of Super Micro Computer (NASDAQ:SMCI) stock are up by over 210% year-to-date. While the server and storage vendor hasn’t announced when it will report its earnings for the quarter ended June 30 yet, Wells Fargo believes that it could preannounce results next week.

On average, Super Micro has either preannounced or announced its earnings 19 days after the end of the quarter, with a range between 18 and 24 days after. Recent investor sentiment has pointed to a positive report due to heightened graphics processing unit (GPU) cluster demand from well-capitalized companies like Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA) and xAI.

“As a reminder, shares of SMCI sold off 23% on 4/19 following the announced F3Q24 earnings release date without a positive pre-announcement,” wrote analysts at the firm. “SMCI shares pulled back 14% post the 4/30 F3Q24 print amid increased competitive / margin concerns.”

The financial services company has a $890 price target on SMCI stock with an “equal weight” rating.

SMCI Stock: Wells Fargo Believes Super Micro Could Preannounce Earnings Next Week

For the quarter, analysts expect revenue growth of 142.28% to $5.29 billion. GAAP EPS is expected to tally in at $7.64. Wells Fargo added that it would be watching if Super Micro is able to achieve a gross margin of 14%. That compares with the analyst estimate for 13.86%.

“The analysts are also watching for updates on SMCI’s manufacturing capacity for DLC racks and the potential need for additional capital raises due to inventory expansion and purchase commitments,” wrote StreetInsider.

In its last earnings report, Super Micro guided for revenue between $5.1 billion and $5.5 billion and a GAAP EPS between $7.20 and $8.06. The midpoint of these estimates is pretty much in line with the average analyst estimate.

Guidance is just as important, if not more important, than current earnings. For the quarter ended Sept. 30, analysts forecast revenue growth of 156.92% to $5.44 billion with a GAAP EPS of $6.56. SMCI stock could see a boost if the company’s guidance is able to exceed these numbers.

Meanwhile, Super Micro has been busy keeping up with artificial intelligence (AI) demand. Last month, the company announced that it would add three new manufacturing facilities in Silicon Valley.

On the date of publication, Eddie Pan held a LONG position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


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