What To Expect From Nvidia’s (NVDA) Q4 Earnings
Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be announcing earnings results tomorrow after the bell. Here's what to look for.
Last quarter Nvidia reported revenues of $18.12 billion, up 206% year on year, beating analyst revenue expectations by 12.5%. It was a stunning quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
Is Nvidia buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Nvidia's revenue to grow 239% year on year to $20.54 billion, improving on the 20.8% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.63 per share.
The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing seven upward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.5%.
Looking at Nvidia's peers in the processors and graphics chips segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 30% year on year, missing analyst estimates by 0.3% and Lattice Semiconductor reported revenue decline of 3% year on year, missing analyst estimates by 3.3%. SMART traded up 8.2% on the results, and Lattice Semiconductor was down 12.3%.
Read our full analysis of SMART's results here and Lattice Semiconductor's results here.
Investors in the processors and graphics chips segment have had steady hands going into the earnings, with the stocks flat on average over the last month. Nvidia is up 21.9% during the same time, and is heading into the earnings with analyst price target of $741.6, compared to share price of $727.1.
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