A Look at Applied Digital's Upcoming Earnings Report

Applied Digital APLD is set to give its latest quarterly earnings report on Wednesday, 2024-10-09. Here's what investors need to know before the announcement.

Analysts estimate that Applied Digital will report an earnings per share (EPS) of $-0.29.

The market awaits Applied Digital's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Past Earnings Performance

In the previous earnings release, the company missed EPS by $0.14, leading to a 13.38% drop in the share price the following trading session.

Here's a look at Applied Digital's past performance and the resulting price change:

Tracking Applied Digital's Stock Performance

Shares of Applied Digital were trading at $7.1 as of October 07. Over the last 52-week period, shares are up 35.68%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Opinions on Applied Digital

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Applied Digital.

Analysts have given Applied Digital a total of 8 ratings, with the consensus rating being Buy. The average one-year price target is $9.75, indicating a potential 37.32% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of and Applied Digital, three key industry players, offering insights into their relative performance expectations and market positioning.

Insights: Peer Analysis

The peer analysis summary provides a snapshot of key metrics for and Applied Digital, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Applied Digital is positioned at the bottom for Revenue Growth, with a negative growth rate. It also ranks at the bottom for Gross Profit, with a negative value. Additionally, it is at the bottom for Return on Equity, showing a negative percentage. Overall, Applied Digital lags behind its peers in all key metrics analyzed.

About Applied Digital

Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.

Applied Digital: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Positive Revenue Trend: Examining Applied Digital's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 98.29% as of 31 May, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Applied Digital's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of -147.49%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Applied Digital's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of -52.98%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Applied Digital's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -9.17%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a high debt-to-equity ratio of 3.43, Applied Digital faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Applied Digital visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.