Wall Street estimates show the company is expected to report a Q2 loss of $0.11 per share on revenue of $86.66 million, according to Stocktwits data.
- Analysts at Freedom Capital forecast Applied Digital’s adjusted EBITDA to exceed 60% in two financial years.
- The firm expects Applied Digital’s Polaris Forge 1 and 2 to deliver a levered internal rate of return in the mid-20% range.
- These two projects will account for Applied Digital’s first 700 megawatts of contracted power.
Applied Digital Corp. (APLD) shares gained over 2% in Wednesday’s pre-market session as the company gears up to report its second-quarter (Q2) earnings after markets close for regular trading.
Ahead of the results, analysts at Freedom Capital initiated coverage of Applied Digital, according to TheFly. The firm set a price target of $36, implying an upside of nearly 19% from Tuesday’s closing price. Freedom Capital has a ‘Buy’ rating on the APLD stock.
Applied Digital’s Q2 results are scheduled to be announced during Wednesday’s after-market hours. Wall Street estimates show the company is expected to report a loss of $0.11 per share on revenue of $86.66 million, according to Stocktwits data.
What Are Analysts Saying?
Analysts at Freedom Capital forecast Applied Digital’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to exceed 60% in two financial years.
The firm expects Applied Digital’s Polaris Forge 1 and 2 to deliver a levered internal rate of return (IRR) in the mid-20% range. These two projects will account for Applied Digital’s first 700 megawatts of contracted power.
The Polaris Forge 1 campus is part of a 400 MW fully contracted deployment for CoreWeave Inc. (CRWV) under long-term lease agreements. The Polaris Forge 2 project, with an initial planned capacity of 280 MW, is expected to reach full capacity in 2027, according to the company.
Meanwhile, analysts at Arete also initiated coverage of Applied Digital, with a ‘Buy’ rating and a price target of $99.
What Does Applied Digital Do?
Applied Digital is a Dallas, Texas-based company that focuses on digital infrastructure for high-demand computing applications.
The company also offers a cloud service that comprises a range of GPU computing services for AI workloads.
How Did Stocktwits Users React?
Retail sentiment on Stocktwits around Applied Digital soared on Wednesday, trending in the ‘extremely bullish’ territory after being in the ‘bullish’ zone a day ago.
One bullish Stocktwits user said that they expect Applied Digital to beat expectations and announce on-schedule construction progress at its Polaris Forge 1 and 2 projects.
However, one undecided user stated that while Applied Digital has “great potential,” its valuations are currently high.
APLD stock is up 23% year-to-date and 209% over the past 12 months.
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