We continue to wade through the 2024 Q4 cycle, which has been positive so far. Next week’s reporting docket is notably stacked, with major AI players Vertiv VRT and Super Micro Computer SMCI expected to report.
How do expectations stack up heading into their releases? Let’s take a closer look.
Vertiv
Vertiv provides services for data centers, communication networks, and commercial and industrial facilities with a portfolio of power, cooling, and IT infrastructure solutions and services.
Earnings and sales expectations for the period to be reported haven’t budged much, with VRT forecasted to see 50% EPS growth on 15% higher sales. The company’s growth trajectory has been underpinned by red-hot demand for its services amid the AI infrastructure buildout.
Below is a chart illustrating the company’s sales on a quarterly basis.
Image Source: Zacks Investment Research
Super Micro Computer
Super Micro Computer is a total IT solution Provider for AI, Cloud, Storage, and 5G/Edge services, fully explaining the buzz around the stock. EPS expectations for the upcoming release have nosedived over recent months, with the current $0.62 per share consensus estimate suggesting 10% growth.
Image Source: Zacks Investment Research
Revenue revisions have been taken lower as well, with forecasted sales of $5.8 billion down 5% over the same timeframe and suggesting 60% year-over-year growth. Like VRT, the company has seen significant top line expansion over recent periods.
Image Source: Zacks Investment Research
Bottom Line
We continue to wade through the 2024 Q4 earnings cycle, which continues to be positive. And next week, two big AI favorites – Super Micro Computer SMCI and Vertiv VRT – are on the reporting docket.
Guidance will be key for both stocks’ reactions post-earnings.
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