What to Expect from Applied Digital's Earnings

Applied Digital -2.00% Pre

Applied Digital

APLD

5.39

5.67

-2.00%

+5.19% Pre

Applied Digital (NASDAQ:APLD) will release its quarterly earnings report on Monday, 2025-04-14. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Applied Digital to report an earnings per share (EPS) of $-0.11.

Investors in Applied Digital are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.08, leading to a 1.99% drop in the share price on the subsequent day.

Here's a look at Applied Digital's past performance and the resulting price change:

Quarter Q2 2025 Q1 2025 Q4 2024 Q3 2024
EPS Estimate -0.14 -0.29 -0.22 -0.10
EPS Actual -0.06 -0.15 -0.36 -0.24
Price Change % -2.0% -7.000000000000001% -13.0% -12.0%

eps graph

Applied Digital Share Price Analysis

Shares of Applied Digital were trading at $5.13 as of April 10. Over the last 52-week period, shares are up 111.33%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Applied Digital

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Applied Digital.

Analysts have given Applied Digital a total of 6 ratings, with the consensus rating being Buy. The average one-year price target is $13.0, indicating a potential 153.41% upside.

Understanding Analyst Ratings Among Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of and Applied Digital, three key industry players, offering insights into their relative performance expectations and market positioning.

Peer Metrics Summary

The peer analysis summary provides a snapshot of key metrics for and Applied Digital, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
Applied Digital Buy 51.34% $11.51M -41.20%

Key Takeaway:

Applied Digital is positioned at the bottom for Revenue Growth with a decrease of 41.20%. In terms of Gross Profit, it is also at the bottom with $11.51M. However, it is at the top for Consensus rating as 'Buy'. For Return on Equity, it is not specified in the data provided.

Delving into Applied Digital's Background

Applied Digital Corp is a designer, developer, and operator of next-generation digital infrastructure across North America. It provides digital infrastructure solutions and cloud services to industries like High-Performance Computing (HPC) and Artificial Intelligence (AI). The company operates in the following business segments; Data Center Hosting Business, Cloud Services Business, and HPC Hosting Business. The majority of its revenue is generated from the Data Center Hosting Business which operates data centers to provide energized space to crypto mining customers.

Applied Digital's Economic Impact: An Analysis

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Applied Digital's revenue growth over a period of 3 months has been noteworthy. As of 30 November, 2024, the company achieved a revenue growth rate of approximately 51.34%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -218.19%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Applied Digital's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -41.2%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Applied Digital's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -11.23%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a high debt-to-equity ratio of 1.84, Applied Digital faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Applied Digital visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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