A Glimpse of Super Micro Computer's Earnings Potential

Super Micro Computer SMCI is preparing to release its quarterly earnings on Tuesday, 2024-11-05. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Super Micro Computer to report an earnings per share (EPS) of $0.75.

Anticipation surrounds Super Micro Computer's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS missed by $0.19, leading to a 20.14% drop in the share price on the subsequent day.

Here's a look at Super Micro Computer's past performance and the resulting price change:

Stock Performance

Shares of Super Micro Computer were trading at $26.05 as of November 01. Over the last 52-week period, shares are up 2.33%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Super Micro Computer

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Super Micro Computer.

The consensus rating for Super Micro Computer is Neutral, based on 15 analyst ratings. With an average one-year price target of $590.6, there's a potential 2167.18% upside.

Comparing Ratings with Peers

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

• The consensus outlook from analysts is an Buy trajectory for Pure Storage, with an average 1-year price target of $67.14, indicating a potential 157.74% upside.
• The consensus outlook from analysts is an Outperform trajectory for Western Digital, with an average 1-year price target of $91.0, indicating a potential 249.33% upside.
• NetApp is maintaining an Neutral status according to analysts, with an average 1-year price target of $133.5, indicating a potential 412.48% upside.

Analysis Summary for Peers

Within the peer analysis summary, vital metrics for Pure Storage, Western Digital and NetApp are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Super Micro Computer ranks highest in Revenue Growth among its peers. It is at the bottom in terms of Gross Profit. The company's Return on Equity is the lowest compared to its peers. Overall, Super Micro Computer is positioned in the middle when considering all metrics collectively.

All You Need to Know About Super Micro Computer

Super Micro Computer Inc provides high-performance server technology services to cloud computing, data center, Big Data, high-performance computing, and "Internet of Things" embedded markets. Its solutions include server, storage, blade and workstations to full racks, networking devices, and server management software. The firm follows a modular architectural approach, which provides flexibility to deliver customized solutions. The Company operates in one operating segment that develops and provides high-performance server solutions based upon an innovative, modular and open-standard architecture. More than half of the firm's revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.

Super Micro Computer: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Super Micro Computer's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 37.87% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Super Micro Computer's net margin is impressive, surpassing industry averages. With a net margin of 6.64%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Super Micro Computer's ROE stands out, surpassing industry averages. With an impressive ROE of 6.68%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Super Micro Computer's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.75% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Super Micro Computer's debt-to-equity ratio is below the industry average at 0.4, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Super Micro Computer visit their earnings calendar on our site.

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