On Friday, Wells Fargo maintained its Equal Weight rating on Super Micro Computer (NASDAQ:SMCI) with a steady price target of $960.00. The firm noted the absence of a positive preannouncement from the company as it disclosed the upcoming earnings release date for its third fiscal quarter of 2024, which is set for Tuesday, April 30. Historically, Super Micro has frequently preannounced its revenue range, doing so in seven of the previous eight quarters.
The lack of a preannouncement this time around has caught attention since Super Micro typically provides this information when its financial results are expected to significantly deviate from guidance. The only other instance when the company did not preannounce was for the first fiscal quarter of 2024 ending in September 2023, which aligned with the guidance provided.
The observation becomes particularly noteworthy in light of the company's previous quarter performance. For the second fiscal quarter of 2024, which ended in December 2023, Super Micro had preannounced a substantial revenue upside, forecasting revenues between $3.6 billion and $3.65 billion. This was a significant increase from the initial guidance range of $2.7 billion to $2.9 billion.
The consistent practice of preannouncing has been an indicator for analysts and investors to gauge the company's performance against its guidance. The current departure from this trend is seen as a notable point of interest as the market anticipates the forthcoming earnings report at the end of April.
InvestingPro Insights
As Super Micro Computer (NASDAQ:SMCI) approaches its third fiscal quarter earnings report, the market is closely monitoring the company's performance. According to InvestingPro data, Super Micro has a market capitalization of $46.61 billion and has experienced a remarkable revenue growth of 39.22% over the last twelve months as of Q2 2024. This surge in revenue coincides with the company's previous preannouncement of a substantial revenue upside for Q2 2024.
InvestingPro Tips highlight that Super Micro is trading at a high earnings multiple, with a P/E ratio of 58.97, which suggests the stock might be valued optimistically by the market, reflecting expectations of continued growth or high potential earnings in the future. Furthermore, the company is recognized as a prominent player in the Technology Hardware, Storage & Peripherals industry, which could be a contributing factor to its high valuation and the strong return of 745.46% over the last year.
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