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For the fiscal fourth quarter, the company expects revenues of $20 billion (+/-2%). The Zacks Consensus Estimate is pegged at $20.21 billion, indicating a whopping 234% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings is pegged at $4.54 per share. This suggests year-over-year growth of 415.9% from the year-ago quarter’s earnings of 88 cents per share.
The company’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, the average surprise being 19%.
Let’s see how things have shaped up before the announcement.
The continued strength of its Datacenter business on the increasing adoption of cloud-based solutions amid the growing hybrid working trend is expected to have boosted NVDA’s fourth-quarter revenues. An increase in Hyperscale demand and growing adoption in the inference market are likely to have been tailwinds in the to-be-reported quarter.
Additionally, the Datacenter end-market business is likely to have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. The strong demand for its chips from large cloud service and consumer internet companies is anticipated to have aided the segment’s top-line growth in the to-be-reported quarter. Our third-quarter revenue estimate for the Datacenter end market is pegged at $16.4 billion, indicating robust year-over-year growth of 354.2%.
Moreover, NVIDIA’s fourth-quarter performance is likely to have benefited from the recovery across its Gaming and Professional Visualization end markets. The Gaming end market’s last three quarters’ results had shown signs of recovery as inventory with channel partners reached normal levels. The company also registered strong demand across most regions for its gaming products.
Revenues from the Gaming end market increased 81% year over year while growing 15% sequentially to $2.86 billion in the third quarter of fiscal 2024. Our fourth-quarter revenue estimate for the Gaming end market stands at $2.83 billion, implying a 54.7% increase from the year-ago quarter.
NVIDIA’s Professional Visualization segment performance also reflected recovery, with revenues increasing 108% year over year and 10% sequentially in the third quarter. We believe that the trend is likely to have continued in the fourth quarter for the end market. Our fourth-quarter revenue estimate for the Professional Visualization end market is pegged at $433.3 million, suggesting a 91.7% increase from the year-ago quarter.
Further, the company’s Automotive segment showed an improvement in trends in eight of the last ten quarters. The positive trend is likely to have continued in the fiscal fourth quarter, mainly due to increasing investments in self-driving and AI cockpit solutions. Our fourth-quarter revenue estimate for the Automotive end market is pegged at $294.5 million, indicating year-over-year growth of 0.2%.
Earnings Whispers
Our proven model predicts an earnings beat for NVIDIA this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($4.71 per share) and the Zacks Consensus Estimate ($4.54 per share), is +3.67%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: NVIDIA carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Per our model, Synchronoss Technologies (SNCR - Free Report) , AutoZone (AZO - Free Report) and Booking Holdings (BKNG - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Synchronoss sports a Zacks Rank #1 and has an Earnings ESP of +157.1%. The company is expected to report fourth-quarter 2023 results on Mar 5. Its bottom-line result surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being -16.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synchronoss’ fourth-quarter bottom line is pegged at a loss of 11 cents per share, significantly narrower than the year-ago quarter’s loss of 72 cents. The consensus mark for revenues stands at $43.8 million, calling for a year-over-year decline of 29%.
AutoZone is slated to report second-quarter fiscal 2024 results on Feb 27. The company has a Zacks Rank #3 and an Earnings ESP of +3.83% at present. AutoZone’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.9%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $26.18 per share, suggesting an increase of 6.3% from the year-ago quarter’s earnings of $24.64. AutoZone’s quarterly revenues are estimated to improve 4.4% to $3.85 billion.
Booking Holdings carries a Zacks Rank #3 and has an Earnings ESP of +2.07%. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 16.4%.
The Zacks Consensus Estimate for Booking Holdings’ fourth-quarter earnings stands at $26.69 per share, indicating a year-over-year improvement of 20%. It is estimated to report revenues of $4.65 billion, which implies an increase of approximately 14.9% from the year-ago quarter.
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Is a Beat Likely for NVIDIA (NVDA) This Earnings Season?
NVIDIA Corporation (NVDA - Free Report) is likely to beat expectations when it reports fourth-quarter fiscal 2024 results after market close on Feb 21.
For the fiscal fourth quarter, the company expects revenues of $20 billion (+/-2%). The Zacks Consensus Estimate is pegged at $20.21 billion, indicating a whopping 234% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings is pegged at $4.54 per share. This suggests year-over-year growth of 415.9% from the year-ago quarter’s earnings of 88 cents per share.
The company’s earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing on one occasion, the average surprise being 19%.
Let’s see how things have shaped up before the announcement.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation price-eps-surprise | NVIDIA Corporation Quote
Factors to Note
The continued strength of its Datacenter business on the increasing adoption of cloud-based solutions amid the growing hybrid working trend is expected to have boosted NVDA’s fourth-quarter revenues. An increase in Hyperscale demand and growing adoption in the inference market are likely to have been tailwinds in the to-be-reported quarter.
Additionally, the Datacenter end-market business is likely to have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Hopper and Ampere architectures. The strong demand for its chips from large cloud service and consumer internet companies is anticipated to have aided the segment’s top-line growth in the to-be-reported quarter. Our third-quarter revenue estimate for the Datacenter end market is pegged at $16.4 billion, indicating robust year-over-year growth of 354.2%.
Moreover, NVIDIA’s fourth-quarter performance is likely to have benefited from the recovery across its Gaming and Professional Visualization end markets. The Gaming end market’s last three quarters’ results had shown signs of recovery as inventory with channel partners reached normal levels. The company also registered strong demand across most regions for its gaming products.
Revenues from the Gaming end market increased 81% year over year while growing 15% sequentially to $2.86 billion in the third quarter of fiscal 2024. Our fourth-quarter revenue estimate for the Gaming end market stands at $2.83 billion, implying a 54.7% increase from the year-ago quarter.
NVIDIA’s Professional Visualization segment performance also reflected recovery, with revenues increasing 108% year over year and 10% sequentially in the third quarter. We believe that the trend is likely to have continued in the fourth quarter for the end market. Our fourth-quarter revenue estimate for the Professional Visualization end market is pegged at $433.3 million, suggesting a 91.7% increase from the year-ago quarter.
Further, the company’s Automotive segment showed an improvement in trends in eight of the last ten quarters. The positive trend is likely to have continued in the fiscal fourth quarter, mainly due to increasing investments in self-driving and AI cockpit solutions. Our fourth-quarter revenue estimate for the Automotive end market is pegged at $294.5 million, indicating year-over-year growth of 0.2%.
Earnings Whispers
Our proven model predicts an earnings beat for NVIDIA this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($4.71 per share) and the Zacks Consensus Estimate ($4.54 per share), is +3.67%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: NVIDIA carries a Zacks Rank #2.
Other Stocks With the Favorable Combination
Per our model, Synchronoss Technologies (SNCR - Free Report) , AutoZone (AZO - Free Report) and Booking Holdings (BKNG - Free Report) also have the right combination of elements to post an earnings beat in their upcoming releases.
Synchronoss sports a Zacks Rank #1 and has an Earnings ESP of +157.1%. The company is expected to report fourth-quarter 2023 results on Mar 5. Its bottom-line result surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average surprise being -16.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synchronoss’ fourth-quarter bottom line is pegged at a loss of 11 cents per share, significantly narrower than the year-ago quarter’s loss of 72 cents. The consensus mark for revenues stands at $43.8 million, calling for a year-over-year decline of 29%.
AutoZone is slated to report second-quarter fiscal 2024 results on Feb 27. The company has a Zacks Rank #3 and an Earnings ESP of +3.83% at present. AutoZone’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 8.9%.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $26.18 per share, suggesting an increase of 6.3% from the year-ago quarter’s earnings of $24.64. AutoZone’s quarterly revenues are estimated to improve 4.4% to $3.85 billion.
Booking Holdings carries a Zacks Rank #3 and has an Earnings ESP of +2.07%. The company is scheduled to report fourth-quarter 2023 results on Feb 22. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 16.4%.
The Zacks Consensus Estimate for Booking Holdings’ fourth-quarter earnings stands at $26.69 per share, indicating a year-over-year improvement of 20%. It is estimated to report revenues of $4.65 billion, which implies an increase of approximately 14.9% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.