Applied Digital Earnings: What To Look For From APLD

Digital infrastructure provider Applied Digital (NASDAQ:APLD) will be announcing earnings results this Wednesday after market hours. Here’s what to look for.

Applied Digital beat analysts’ revenue expectations by 17.6% last quarter, reporting revenues of $64.22 million, up 84.3% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS and revenue estimates.

Is Applied Digital a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Applied Digital’s revenue to grow 72.7% year on year to $110.3 million, improving from the 51.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Applied Digital has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Applied Digital’s peers in the it services & other tech segment, only Accenture has reported results so far. It beat analysts’ revenue estimates by 1.2%, delivering year-on-year sales growth of 6%. The stock price was unchanged following the results.

Investors in the it services & other tech segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Applied Digital is down 5.8% during the same time and is heading into earnings with an average analyst price target of $43.70 (compared to the current share price of $30.27).

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