3rdPartyFeeds

NVIDIA (NVDA) to Post Q3 Earnings: What's in the Offing?

Weakness in the data center market might have affected NVIDIA's (NVDA) third-quarter fiscal 2020 earnings. However, strength in gaming and automotive is expected to have aided the top line. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NVIDIA Corporation NVDA is scheduled to report third-quarter fiscal 2020 results on Nov 14.

For the quarter, NVIDIA anticipates revenues of $2.9 billion (+/-2%). The Zacks Consensus Estimate is currently pegged at $2.9 billion, indicating an 8.8% fall from the year-ago reported figure.

The consensus mark for earnings stands at $1.57, implying a plunge of 14.7% from the year-earlier reported number.” data-reactid=”11″>NVIDIA Corporation NVDA is scheduled to report third-quarter fiscal 2020 results on Nov 14.

For the quarter, NVIDIA anticipates revenues of $2.9 billion (+/-2%). The Zacks Consensus Estimate is currently pegged at $2.9 billion, indicating an 8.8% fall from the year-ago reported figure.

The consensus mark for earnings stands at $1.57, implying a plunge of 14.7% from the year-earlier reported number.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NVIDIA Corporation Price and EPS Surprise” data-reactid=”12″>NVIDIA Corporation Price and EPS Surprise

NVIDIA Corporation Price and EPS Surprise

NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In the trailing four quarters, the company’s earnings surpassed the Zacks Consensus Estimate thrice and missed once, the average positive surprise being 4.5%.

In the last reported quarter, the company’s non-GAAP earnings of $1.24 per share topped the Zacks Consensus Estimate by 7.8% but tumbled 36% year over year. However, the bottom line improved 41% sequentially.

Revenues of $2.58 billion beat the Zacks Consensus Estimate of $2.55 billion but declined 17% year over year. However, the top line rose 16% sequentially. Strength in automotive, and OEM and IP end-markets drove the top line. However, weakness in data center market was a dampener.

Factors at Play

NVIDIA’s growth opportunities in ray-traced gaming, rendering, high-performance computing, AI and self-driving cars might reflect positively in fiscal third-quarter results.

A strong uptick in PC gamers, eSports players and higher spending on the gaming GPUs might have been tailwinds for the top line in the quarter. Moreover, improvement in gaming product mix is likely to have been a margin booster.

Production ramp up of two new models of Nintendo Switch gaming consoles is expected to have benefited the company’s console business.

Moreover, growing demand for NVIDIA’s Tesla T4 GPU is a positive. Growth in inference revenues is likely to have been a steady tailwind in the September quarter.

During the quarter, the company announced a powerful GPU-enabled conversational AI platform, Microsoft MSFT being among its early adopters. This is likely to have positively impacted its quarterly performance. Furthermore, partnerships with the likes of VMware VMW is likely to have benefited the company’s GPU business in the fiscal third quarter.

NVIDIA is also expected to have gained from increasing Pro Visualization revenues, driven by strength in mobile workstation products with strong demand for new thin and light form factors. Moreover, rising adoption of AI-based smart cockpit infotainment solutions is likely to have driven automotive revenues in the to-be-reported quarter.

However, continued shortage of Intel INTC processors might have affected sales of gaming GPUs for laptops, which is likely to have hurt NVIDIA’s GPU demand during the fiscal third quarter.

NVIDIA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs &gt;&gt;
&nbsp;” data-reactid=”25″>In the trailing four quarters, the company’s earnings surpassed the Zacks Consensus Estimate thrice and missed once, the average positive surprise being 4.5%.

In the last reported quarter, the company’s non-GAAP earnings of $1.24 per share topped the Zacks Consensus Estimate by 7.8% but tumbled 36% year over year. However, the bottom line improved 41% sequentially.

Revenues of $2.58 billion beat the Zacks Consensus Estimate of $2.55 billion but declined 17% year over year. However, the top line rose 16% sequentially. Strength in automotive, and OEM and IP end-markets drove the top line. However, weakness in data center market was a dampener.

Factors at Play

NVIDIA’s growth opportunities in ray-traced gaming, rendering, high-performance computing, AI and self-driving cars might reflect positively in fiscal third-quarter results.

A strong uptick in PC gamers, eSports players and higher spending on the gaming GPUs might have been tailwinds for the top line in the quarter. Moreover, improvement in gaming product mix is likely to have been a margin booster.

Production ramp up of two new models of Nintendo Switch gaming consoles is expected to have benefited the company’s console business.

Moreover, growing demand for NVIDIA’s Tesla T4 GPU is a positive. Growth in inference revenues is likely to have been a steady tailwind in the September quarter.

During the quarter, the company announced a powerful GPU-enabled conversational AI platform, Microsoft MSFT being among its early adopters. This is likely to have positively impacted its quarterly performance. Furthermore, partnerships with the likes of VMware VMW is likely to have benefited the company’s GPU business in the fiscal third quarter.

NVIDIA is also expected to have gained from increasing Pro Visualization revenues, driven by strength in mobile workstation products with strong demand for new thin and light form factors. Moreover, rising adoption of AI-based smart cockpit infotainment solutions is likely to have driven automotive revenues in the to-be-reported quarter.

However, continued shortage of Intel INTC processors might have affected sales of gaming GPUs for laptops, which is likely to have hurt NVIDIA’s GPU demand during the fiscal third quarter.

NVIDIA currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>
 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
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
&nbsp;
Microsoft Corporation (MSFT) : Free Stock Analysis Report
&nbsp;
VMware, Inc. (VMW) : Free Stock Analysis Report
&nbsp;
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
&nbsp;
Intel Corporation (INTC) : Free Stock Analysis Report
&nbsp;
To read this article on Zacks.com click here.
&nbsp;
Zacks Investment Research” data-reactid=”26″>
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
 
Microsoft Corporation (MSFT) : Free Stock Analysis Report
 
VMware, Inc. (VMW) : Free Stock Analysis Report
 
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
 
Intel Corporation (INTC) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Read More

Add Comment

Click here to post a comment