Applied Digital Corporation (NASDAQ:APLD) shares are trading higher Friday. The company reported second quarter earnings on Wednesday and received a flood of analyst coverage on Thursday.
Applied Digital stock is charging ahead with explosive momentum. What’s behind APLD gains?
What To Know: Applied reported adjusted earnings per share of 0 cents, beating the consensus estimate of a 10 cent-loss. In addition, the company reported revenue of $126.58 million, beating the consensus estimate of $89.75 million.
Revenue increased 250% year over year, driven primarily by growth in the company's HPC Hosting Business and improved performance across its data center hosting operations.
During the quarter, Applied achieved Ready-for-Service status at Polaris Forge 1, delivering 100 megawatts of capacity on schedule and fully energizing its first building. The company also announced a long-term lease with a U.S.-based investment-grade hyperscaler for 200 megawatts at its Polaris Forge 2 campus.
Applied strengthened its liquidity position through multiple financing activities, including a $2.35 billion senior secured notes offering and additional draws under its preferred equity financing facility with Macquarie Asset Management. As of quarter end, the company reported approximately $2.3 billion in cash, cash equivalents, and restricted cash.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Roth Capital analyst Darren Aftahi maintained a Buy rating on Applied and raised the price target from $56 to $58.
- B. Riley Securities analyst Nick Giles maintained a Buy rating on Applied and raised the price target from $47 to $53.
APLD Price Action: At the time of writing, Applied shares are trading 13.99% higher at $26.41, according to data from Benzinga Pro.
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