APLD will report Q2 earnings with expected revenue growth, expanding data center capacity

From Nasdaq: 2025-01-10 10:49:00

Applied Digital Corporation (APLD) will report its second-quarter fiscal 2025 results on Jan. 14. Analysts expect revenues to grow by 50.83% year-over-year to $63.65 million. The consensus loss is expected to be 14 cents per share, the same as the year-ago quarter. APLD has been benefiting from strong top-line growth and partnerships with key players like NVIDIA and Hewlett Packard.

APLD’s stock has underperformed in the past year, appreciating only 11%. The company’s valuation is a concern, with a Value Score of F and a higher Price/Sales ratio compared to the industry median. However, APLD is expanding its data center capacity, with plans to increase total capacity to 400 MW, which could drive future growth.

Applied Digital’s expanding data center capacity and improving liquidity position are positive signs for investors. The company recently secured a $160 million private placement and a $150 million debt financing deal. However, the stretched valuation and higher expenses related to data center leases remain concerns. A Zacks Rank #3 (Hold) suggests waiting for a better entry point to accumulate the stock.

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Read more at Nasdaq: APLD Set to Report Q2 Earnings: Buy, Sell or Hold the Stock?