Q4 Earnings Scorecard and Analyst Reports for NVIDIA, Costco & Stryker

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including NVIDIA (NVDA),&nbsp;Costco Wholesale (COST) and Stryker (SYK). We have also provided a real-time update on the ongoing Q4 earnings season. The research reports featured here have been hand-picked from the roughly 70 reports published by our analyst team today.” data-reactid=”19″>The Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including NVIDIA (NVDA), Costco Wholesale (COST) and Stryker (SYK). We have also provided a real-time update on the ongoing Q4 earnings season. The research reports featured here have been hand-picked from the roughly 70 reports published by our analyst team today.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="You can see&nbsp;all of&nbsp;today’s&nbsp;research reports here &gt;&gt;&gt;” data-reactid=”20″>You can see all of today’s research reports here >>>

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Q4 Earnings Season Scorecard” data-reactid=”21″>Q4 Earnings Season Scorecard

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Including all of this morning’s reports, we now have Q4 results from 432 S&amp;P 500 members or 86.4% of the index’s total membership. Total earnings for these companies are up +2.1% from the same period last year on +4.6% higher revenues, with 72% beating EPS estimates and 65.5% beating revenue estimates.&nbsp;” data-reactid=”22″>Including all of this morning’s reports, we now have Q4 results from 432 S&P 500 members or 86.4% of the index’s total membership. Total earnings for these companies are up +2.1% from the same period last year on +4.6% higher revenues, with 72% beating EPS estimates and 65.5% beating revenue estimates. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This is a better showing than we have seen from these companies in the first three quarters of 2019.&nbsp;” data-reactid=”23″>This is a better showing than we have seen from these companies in the first three quarters of 2019. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For more details about the Q4 earnings season and evolving expectations for the current period, please check our weekly Earnings Trends report here &gt;&gt;&gt;Q1 Estimates Holding Up Despite Virus Impact&nbsp;” data-reactid=”24″>For more details about the Q4 earnings season and evolving expectations for the current period, please check our weekly Earnings Trends report here >>>Q1 Estimates Holding Up Despite Virus Impact 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NVIDIA’s shares have outperformed the Zacks General Semiconductor industry over the past year (+102% vs. +47.8%). The Zacks analyst believes that the company is benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, an increase in Hyperscale demand was a tailwind for the Data Center business.” data-reactid=”25″>NVIDIA’s shares have outperformed the Zacks General Semiconductor industry over the past year (+102% vs. +47.8%). The Zacks analyst believes that the company is benefiting from strong growth in GeForce desktop and notebook GPUs, which is boosting gaming revenues. Moreover, an increase in Hyperscale demand was a tailwind for the Data Center business.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="NVIDIA’s fourth-quarter fiscal 2020 results reflected strength in Data Center and Gaming end markets. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, strength across desktop workstation products is aiding Professional Visualization revenues.” data-reactid=”26″>NVIDIA’s fourth-quarter fiscal 2020 results reflected strength in Data Center and Gaming end markets. Further, the solid uptake of AI-based smart cockpit infotainment solutions is a boon. Additionally, strength across desktop workstation products is aiding Professional Visualization revenues.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="However, in the near term, management expects a $100-million negative impact of the coronavirus menace on revenues. Moreover, the U.S.-China trade war remains a key concern. Also, lower demand for notebook workstations might be a near-term hindrance.&nbsp;” data-reactid=”27″>However, in the near term, management expects a $100-million negative impact of the coronavirus menace on revenues. Moreover, the U.S.-China trade war remains a key concern. Also, lower demand for notebook workstations might be a near-term hindrance. 

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="(You can&nbsp;read the full research report on NVIDIA here &gt;&gt;&gt;)” data-reactid=”28″>(You can read the full research report on NVIDIA here >>>)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Shares of Costco have gained +17.1% in the past six months against the Zacks Discount Retail industry’s rise of +16.6%. The Zacks analyst believes that that the company’s business model and commitment toward opening membership warehouses will continue to drive traffic.” data-reactid=”29″>Shares of Costco have gained +17.1% in the past six months against the Zacks Discount Retail industry’s rise of +16.6%. The Zacks analyst believes that that the company’s business model and commitment toward opening membership warehouses will continue to drive traffic.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The company’s growth strategies, better price management, sturdy comps performance and strong membership trends reinforce its position. Moreover, with the wave of digital transformation, Costco is rapidly adopting the omni-channel mantra to provide a seamless shopping experience, whether online or in-stores.” data-reactid=”30″>The company’s growth strategies, better price management, sturdy comps performance and strong membership trends reinforce its position. Moreover, with the wave of digital transformation, Costco is rapidly adopting the omni-channel mantra to provide a seamless shopping experience, whether online or in-stores.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Such concerted efforts have been favoring comps, which remain one of the key factors behind incremental sales. Comps grew 6.6%, while sales improved 8% during month of January. However, any higher investments or aggressive pricing strategy may hurt margins. Moreover, rising SG&amp;A expenses and stiff competition also pose concerns.” data-reactid=”31″>Such concerted efforts have been favoring comps, which remain one of the key factors behind incremental sales. Comps grew 6.6%, while sales improved 8% during month of January. However, any higher investments or aggressive pricing strategy may hurt margins. Moreover, rising SG&A expenses and stiff competition also pose concerns.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="(You can&nbsp;read the full research report on Costco here &gt;&gt;&gt;)” data-reactid=”32″>(You can read the full research report on Costco here >>>)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stryker’s shares have gained +11.9% over the past three months against the Zacks Medical Products industry’s rise of +5.7%. The Zacks analyst believes that Stryker continues to gain from its core MedSurg unit, which put up a strong show in the fourth quarter. Additionally, strength in flagship Mako platform continues to favor the company.” data-reactid=”33″>Stryker’s shares have gained +11.9% over the past three months against the Zacks Medical Products industry’s rise of +5.7%. The Zacks analyst believes that Stryker continues to gain from its core MedSurg unit, which put up a strong show in the fourth quarter. Additionally, strength in flagship Mako platform continues to favor the company.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Stryker exited fourth-quarter 2019 on a strong note, wherein both earnings and revenues beat their respective consensus marks. Moreover, solid performance by the neurotech product lines drove the core Neurotechnology &amp; Spine unit in the quarter under review. Robust international growth also instills investor optimism in the stock.” data-reactid=”34″>Stryker exited fourth-quarter 2019 on a strong note, wherein both earnings and revenues beat their respective consensus marks. Moreover, solid performance by the neurotech product lines drove the core Neurotechnology & Spine unit in the quarter under review. Robust international growth also instills investor optimism in the stock.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Expansion in operating margin is a positive while a strong outlook for 2020 is indicative of bright prospects. However, pricing pressure continues to plague Stryker. Stiff competition in the MedTech space remains a headwind.” data-reactid=”35″>Expansion in operating margin is a positive while a strong outlook for 2020 is indicative of bright prospects. However, pricing pressure continues to plague Stryker. Stiff competition in the MedTech space remains a headwind.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="(You can&nbsp;read the full research report on Stryker here &gt;&gt;&gt;)” data-reactid=”36″>(You can read the full research report on Stryker here >>>)

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Other noteworthy reports we are featuring today include Advanced Micro Devices (AMD), Mitsubishi UFJ Financial (MUFG) and CSX Corporation (CSX).” data-reactid=”37″>Other noteworthy reports we are featuring today include Advanced Micro Devices (AMD), Mitsubishi UFJ Financial (MUFG) and CSX Corporation (CSX).