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NVIDIA (NVDA) to Post Q1 Earnings: Another Beat in Store?
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NVIDIA Corporation (NVDA - Free Report) is scheduled to report first-quarter fiscal 2019 results on May 10, after the market closes. The question lingering in investors’ minds is whether or not the company will be able to post a positive earnings surprise in the quarter.
Notably, the company has a stellar earnings surprise history. In the trailing four quarters, the company’s results surpassed the Zacks Consensus Estimate, pulling off an average positive earnings surprise of 40.8%.
What the Zacks Model Unveils?
Our proven model shows that NVIDIA is likely to beat earnings this quarter as it possesses the two key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NVIDIA carries a Zacks Rank of 3 and has an Earnings ESP of +0.45%.
The Zacks Consensus Estimate for the fiscal first quarter is pegged at $1.65, indicating a whopping rise of 94% from the year-ago reported figure. The Zacks Consensus Estimate has remained unchanged over the past 30 days. Additionally, analysts polled by Zacks project revenues of roughly $2.91 billion, up 50% from the prior-year quarter.
The last few months have been turbulent for the company, thanks to the slew of disappointing news, like sluggish demand from cryptocurrency miners and Uber’s driverless vehicle test incident, which prompted NVIDIA to suspend test drives for all its driverless vehicles, dragging down its share price. However, we believe these to have had the least impact on the company's quarterly results.
This is because Uber’s driverless-test mishap will lead to increased investment by vehicle makers to make driverless cars safer. Hence, demand for NVIDIA’s chips will remain unaffected, in our opinion. Notably, during the CES 2018, NVIDIA had stated that more than 320 companies, including Baidu (BIDU - Free Report) , Uber and Volkswagen, are working with it on developing self-driving technology. All these make us optimistic about the company’s automotive segment’s fiscal first-quarter performance.
Moreover, sales generated from cryptocurrency miners contribute a meagre part to the company’s overall revenues, therefore, any slowdown in demand will be immaterial.
The company’s gaming segment will likely be the largest contributor to its overall fiscal first-quarter revenues, and continue to witness growth. This segment is anticipated to have recorded year-over-year growth of 61.4%, and reach $1.66 billion in the quarter, per the Zacks Consensus Estimate.
Furthermore, the company’s data-center segment is projected to have maintained its massive growth momentum in the to-be-reported quarter. Demand for NVIDIA’s data-center-focused products has escalated due to rise in data-center production, globally, and management has successfully marketed its solutions to compete with industry leaders like Intel (INTC - Free Report) . Per the consensus estimate, the segment is likely to soar 67.5% from the year-ago quarter level and reach $685 million in the fiscal first quarter.
Furthermore, NVIDIA’s overall performance will likely have benefited from its growing strength in the artificial intelligence (AI) space. The company’s cutting-edge technology has helped it become the leading player in providing AI for applications to autonomous driving vehicles, outpacing other competitors, such as Intel and Advanced Micro Devices (AMD - Free Report) , in terms of growth.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
NVIDIA (NVDA) to Post Q1 Earnings: Another Beat in Store?
NVIDIA Corporation (NVDA - Free Report) is scheduled to report first-quarter fiscal 2019 results on May 10, after the market closes. The question lingering in investors’ minds is whether or not the company will be able to post a positive earnings surprise in the quarter.
Notably, the company has a stellar earnings surprise history. In the trailing four quarters, the company’s results surpassed the Zacks Consensus Estimate, pulling off an average positive earnings surprise of 40.8%.
What the Zacks Model Unveils?
Our proven model shows that NVIDIA is likely to beat earnings this quarter as it possesses the two key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
NVIDIA carries a Zacks Rank of 3 and has an Earnings ESP of +0.45%.
The Zacks Consensus Estimate for the fiscal first quarter is pegged at $1.65, indicating a whopping rise of 94% from the year-ago reported figure. The Zacks Consensus Estimate has remained unchanged over the past 30 days. Additionally, analysts polled by Zacks project revenues of roughly $2.91 billion, up 50% from the prior-year quarter.
NVIDIA Corporation Price and EPS Surprise
NVIDIA Corporation Price and EPS Surprise | NVIDIA Corporation Quote
What’s Behind This Overwhelming Expectation?
The last few months have been turbulent for the company, thanks to the slew of disappointing news, like sluggish demand from cryptocurrency miners and Uber’s driverless vehicle test incident, which prompted NVIDIA to suspend test drives for all its driverless vehicles, dragging down its share price. However, we believe these to have had the least impact on the company's quarterly results.
This is because Uber’s driverless-test mishap will lead to increased investment by vehicle makers to make driverless cars safer. Hence, demand for NVIDIA’s chips will remain unaffected, in our opinion. Notably, during the CES 2018, NVIDIA had stated that more than 320 companies, including Baidu (BIDU - Free Report) , Uber and Volkswagen, are working with it on developing self-driving technology. All these make us optimistic about the company’s automotive segment’s fiscal first-quarter performance.
Moreover, sales generated from cryptocurrency miners contribute a meagre part to the company’s overall revenues, therefore, any slowdown in demand will be immaterial.
The company’s gaming segment will likely be the largest contributor to its overall fiscal first-quarter revenues, and continue to witness growth. This segment is anticipated to have recorded year-over-year growth of 61.4%, and reach $1.66 billion in the quarter, per the Zacks Consensus Estimate.
Furthermore, the company’s data-center segment is projected to have maintained its massive growth momentum in the to-be-reported quarter. Demand for NVIDIA’s data-center-focused products has escalated due to rise in data-center production, globally, and management has successfully marketed its solutions to compete with industry leaders like Intel (INTC - Free Report) . Per the consensus estimate, the segment is likely to soar 67.5% from the year-ago quarter level and reach $685 million in the fiscal first quarter.
Furthermore, NVIDIA’s overall performance will likely have benefited from its growing strength in the artificial intelligence (AI) space. The company’s cutting-edge technology has helped it become the leading player in providing AI for applications to autonomous driving vehicles, outpacing other competitors, such as Intel and Advanced Micro Devices (AMD - Free Report) , in terms of growth.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>