Earnings: Nvidia, Zoom, Abercrombie among winners, losers

Major companies, including Zoom (ZM), Best Buy (BBY), Dick's Sporting Goods (DKS), Nordstrom (JWN), Abercrombie & Fitch (ANF), and most notably, Nvidia (NVDA), reported third-quarter earnings on Tuesday. Yahoo Finance spoke to experts across the industry to discuss everything investors need to know, including the winners and losers from this week's results.

Nvidia (00:00:25)

Nvidia reported adjusted earnings of $4.02 per share, well above the expected $3.36. Moor Insights and Strategy CEO and Chief Analyst Patrick Moorhead said, "They can name their price. And it's in a supply constrained environment. I think Nvidia could have done even better."

Zoom (00:00:48)

Zoom reported adjusted earnings of $1.29 per share compared to estimates of $1.10, and raised its 2024 outlook. "In our online segment, we announced 3.0% trim, which is the lowest we've ever reported," Zoom CFO Kelly Steckelberg said. "We're really excited about the progress that we're making there and look forward to ongoing stabilization in our online segment."

Dick's Sporting Goods (00:01:21)

Dick's Sporting Goods reported a third-quarter earnings beat and raised its full-year outlook. Wells Fargo Equity Research Analyst Will Gaertner said, "They clearly have momentum going into the holiday. We'll see what happens in the holiday, obviously the most important quarter for them."

Best Buy (00:01:42)

Best Buy reported a fall in comparable sales for the eighth straight quarter. Wedbush Securities Managing Director Seth Basham said, "It's simply a case of consumers spending less on big ticket discretionary items. We saw this trend accelerate after Labor Day, and Best Buy is right in the throes of that."

Nordstrom (00:02:03)

Nordstrom reported mixed third-quarter results, with adjusted earnings of $0.25 per share compared to estimates of $0.12. However, net sales of $3.20 billion fell short of the expected $3.36 billion. "Clearly Nordstrom sales are quite weak. A sales decline of 7% is quite weak," Morningstar Analyst David Swartz said. "So Nordstrom sales were pretty weak even compared to pretty low expectations."

Abercrombie & Fitch (00:02:17)

Abercrombie & Fitch reported a revenue of $1.06 billion, up 20% over the same period last year. Shares of the company are up over 211% year-to-date. Abercrombie & Fitch CEO Fran Horowitz said, "Abercrombie adults, super super exciting, the 11th consecutive quarter of growth. I think that's a testament to a lot of things. The fact that we've expanded our age cohort, we've expanded our category offerings, we're seeing success around the world."

Video highlights:

00:00:03 - Yahoo Finance Reporter Josh Schafer

00:00:25 - Moor Insights and Strategy CEO and Chief Analyst Patrick Moorhead

00:00:48 - Zoom CFO Kelly Steckelberg

00:01:21 - Wells Fargo Equity Research Analyst Will Gaertner

00:01:42 - Wedbush Securities Managing Director Seth Basham

00:02:03 - Morningstar Analyst David Swartz

00:02:17 - Abercrombie & Fitch CEO Fran Horowitz

Video Transcript

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JOHN SCHAFER: Quite a bit to go through before we get to that turkey. First starting with Tuesday really is going to be the big day of earnings this week. You've got Best Buy, Dick's, Sporting Goods, Lowe's, and Nvidia has been closing in near an all-time high.

So as NVIDIA has moved, as those Magnificent Seven stocks have moved, the stock market has really moved. So we're looking to see if they meet the high expectations come Tuesday.

PATRICK MOORHEAD: When it comes to foundational models, the training of them, NVIDIA is the only game in town. And there might be-- there are some competitors coming up with inference solutions like AMD and Intel is getting this market, but they can name their price.

And it's in a supply constrained environment. I think Nvidia could have done even better.

KELLY STECKELBERG: In our online segment, we announced 3.0% churn, which is the lowest we have ever reported. And that's thanks to a lot of great work by our online team. And that's really opening up the funnel at the top and attracting more talent.

And then by having those customers be able to buy additional products like Zoom Scheduler, like Whiteboard, it really improves the overall retention rate. So we're really excited about the progress that we're making there, and look forward to ongoing stabilization in our online segment.

WILL GAERTNER: This was no doubt a very positive print for them. You know, this is probably one of the first steps for investors to get reengaged after that whiff in 2Q, right. The stock got clobbered after they missed gross margin.

Look, I mean, they clearly have momentum going into the holiday. We'll see what happens in the holiday. Obviously the most important quarter for them.

SETH BASHAM: It's simply a trend of consumers spending less on big ticket discretionary items. We saw this trend accelerate after Labor Day. And Best Buy is right in the throes of that, considering how many items they sell in their store that are big ticket and discretionary.

So consumers are pulling back on those items. It's appliances, it's TVs, it's items along those lines where they're seeing the most pressure.

DAVID SWARTZ: Clearly, Nordstrom sales are quite weak. Sales decline of 7% is pretty bad and especially compared to my estimate, which is down 3%. So Nordstrom sales were pretty weak, even compared to pretty low expectations.

- First of all, I mean, this quarter and this year-to-date really represents the culmination of years of hard, hard work. You've been following this story for quite some time and you know that we've done a lot of work, bottoms up, in every single function to make sure that we are a different company today.

Abercrombie Adult, super, super exciting. I mean, the 11th consecutive quarter of growth. The women's and the men's business team both performing. I think that's testament to a lot of things. The fact that we've expanded our age cohort, we've expanded our category offerings, we're seeing success around the world.

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