APLD Q2 Earnings Lag Estimates, Revenues in Line, Shares Fall

Applied Digital APLD reported a second-quarter fiscal 2025 loss of 66 cents per share, missing the Zacks Consensus Estimate of a loss of 14 cents. The company reported a loss of 10 cents per share in the year-ago quarter.Adjusting for loss on conversion of debt ($25.4 million), loss on change in fair value of debt ($87.2 million), diligence, acquisition, disposition, integration expenses, and litigation expenses ($9.5 million) and stock compensation ($3.5 million), the non-GAAP loss was 6 cents per share, wider than 5 cents per share reported in the year-ago quarter.  Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $63.9 million surged 51% year over year and were in line with the consensus mark. Cloud Services business revenues jumped 523% year over year to $27.7 million, driven by the deployment of additional GPU clusters. The Data Center Hosting business segment generated $36.2 million in revenues. Applied Digital Corporation Price, Consensus and EPS Surprise Applied Digital Corporation price-consensus-eps-surprise-chart | Applied Digital Corporation Quote Applied Digital shares declined 7% following the fiscal second-quarter results. In the trailing 12 months, APLD shares have surged 54.4%, outperforming the Zacks Finance sector’s return of 21.1%.APLD’s HPC Data Center & Data Center Hosting UpdateApplied Digital’s HPC Data Center Hosting business designs, builds and operates next-generation data centers designed to provide massive computing power and support high-performance computing applications within a cost-effective model. It is in late-stage discussions with multiple hyperscalers to finalize a lease agreement for its 100 MW facility, which is currently under construction, in Ellendale, ND.Data Center hosting business offers energized space to crypto mining customers. As of Nov. 30, 2024, APLD’s 106 MW facility in Jamestown, ND, and 180 MW facility in Ellendale, ND, are operating at full capacity.APLD’s Costs Rise in Q2Fiscal second-quarter cost of revenues jumped 76% year over year to $52.4 million as more facilities were energized and additional services were provided to the customers. Adjusted EBITDA was $21.4 million, up 93% year over year in the fiscal second quarter.In the reported quarter, selling, general and administrative expenses soared 46.8% year over year to $29.8 million.Adjusted operating loss was $5.08 million, wider than the year-ago quarter’s loss of $2.3 million.Interest expense appreciated 186% from the year-ago quarter to $4.9 million.Balance Sheet & LiquidityAs of Nov. 30, 2024, Applied Digital had cash, cash equivalents and restricted cash of $314.6 million against debt of $479.6 million.APLD’s division, APLD HPC Holdings LLC, inked a deal with investment vehicles of funds managed by Macquarie Asset Management (MAM) for $5 billion perpetual preferred equity financing. Funds managed by MAM will invest up to $900 million in Applied Digital’s Ellendale HPC data center campus.Applied Digital completed a $450 million offering of 2.75% Convertible Senior Notes due 2030, including $75 million from an option exercised by initial purchasers. Net proceeds were roughly $435.2 million, with $84 million allocated for share repurchases and the remainder for general corporate purposes.Zacks Rank & Stocks to ConsiderCurrently, Applied Digital carries a Zacks Rank #5 (Strong Sell). SoFi Technologies SOFI, Moody’s MCO and Virtu Financial (VIRT) are some better-ranked stocks in the broader sector. While SoFi Technologies sports a Zacks Rank #1 (Strong Buy), Moody’s and Virtu Financial carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Long term earnings growth rate for SOFI, MCO and VRTU are pegged at 50.78%, 12.84% and 26.79%, respectively.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Moody's Corporation (MCO): Free Stock Analysis Report Virtu Financial, Inc. (VIRT): Free Stock Analysis Report Applied Digital Corporation (APLD): Free Stock Analysis Report SoFi Technologies, Inc. (SOFI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks