Let’s dig into the relative performance of Super Micro (NASDAQ: SMCI) and its peers as we unravel the now-completed Q4 hardware & infrastructure earnings season.
The Hardware & Infrastructure sector will be buoyed by demand related to AI adoption, cloud computing expansion, and the need for more efficient data storage and processing solutions. Companies with tech offerings such as servers, switches, and storage solutions are well-positioned in our new hybrid working and IT world. On the other hand, headwinds include ongoing supply chain disruptions, rising component costs, and intensifying competition from cloud-native and hyperscale providers reducing reliance on traditional hardware. Additionally, regulatory scrutiny over data sovereignty, cybersecurity standards, and environmental sustainability in hardware manufacturing could increase compliance costs.
The 9 hardware & infrastructure stocks we track reported a very strong Q4. As a group, revenues beat analysts’ consensus estimates by 9.5% while next quarter’s revenue guidance was in line.
While some hardware & infrastructure stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.6% since the latest earnings results.
Super Micro (NASDAQ: SMCI)
Founded in Silicon Valley in 1993 and known for its modular "building block" approach to server design, Super Micro Computer (NASDAQ: SMCI) designs and manufactures high-performance, energy-efficient server and storage systems for data centers, cloud computing, AI, and edge computing applications.
Super Micro reported revenues of $12.68 billion, up 123% year on year. This print exceeded analysts’ expectations by 21.5%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ EPS guidance for next quarter estimates.
Super Micro delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 3.4% since reporting and currently trades at $30.69.
IonQ (NYSE: IONQ)
Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.
IonQ reported revenues of $61.89 million, up 429% year on year, outperforming analysts’ expectations by 53.2%. The business had an incredible quarter with a beat of analysts’ EPS and revenue estimates.
IonQ achieved the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 1.8% since reporting. It currently trades at $32.99.
Is now the time to buy IonQ? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Xerox (NASDAQ: XRX)
Pioneering the modern office copier and inventing technologies like Ethernet and the laser printer, Xerox (NASDAQ: XRX) provides document management systems, printing technology, and workplace solutions to businesses of all sizes across the globe.
Xerox reported revenues of $2.03 billion, up 25.7% year on year, falling short of analysts’ expectations by 0.9%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
Xerox delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 29% since the results and currently trades at $1.66.
Read our full analysis of Xerox’s results here.
Dell (NYSE: DELL)
Founded by Michael Dell in his University of Texas dorm room in 1984 with just $1,000, Dell Technologies (NYSE: DELL) provides hardware, software, and services that help organizations build their IT infrastructure, manage cloud environments, and enable digital transformation.
Dell reported revenues of $33.38 billion, up 39.5% year on year. This result beat analysts’ expectations by 5.2%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ EPS guidance for next quarter estimates and a solid beat of analysts’ revenue estimates.
The stock is up 24.7% since reporting and currently trades at $151.43.
Read our full, actionable report on Dell here, it’s free.
Pure Storage (NYSE: PSTG)
Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE: PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments.
Pure Storage reported revenues of $1.06 billion, up 20.4% year on year. This number topped analysts’ expectations by 2.5%. It was an exceptional quarter as it also recorded revenue guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ billings estimates.
The stock is down 16.7% since reporting and currently trades at $61.27.
Read our full, actionable report on Pure Storage here, it’s free.
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