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NVIDIA (NVDA) to Report Q4 Earnings: What's in Store?

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NVIDIA Corporation (NVDA - Free Report) is slated to release fourth-quarter fiscal 2021 results on Feb 24.

For the fiscal fourth quarter, the company expects revenues of $4.8 billion (+/-2%). The Zacks Consensus Estimate for the same is also pegged at $4.83 billion, calling for 55.4% growth, year on year.

The Zacks Consensus Estimate for quarterly earnings is pinned at $2.80, suggesting a year-over-year improvement of 48.2%.

The company’s earnings beat the Zacks Consensus Estimate in all of the preceding four quarters, the average surprise being 11.5%.

Let’s see how things have shaped up prior to the announcement.

Factors at Play

NVIDIA’s fiscal fourth-quarter performance is likely to have benefited from growth across all of its business segments except the Automotive and Professional Visualization units.

The company’s growth opportunities in ray-traced gaming, rendering, high-performance computing and AI are likely to have been driving factors during the period in discussion. A series of blockbuster AAA titles, which pledged support for the NVIDIA RTX ray tracing technology, might have been a positive.

NVIDIA is also anticipated to have benefited from strength in its data-center business on the growing adoption of cloud-based solutions amid the coronavirus crisis-induced work-from-home wave. Increase in Hyperscale demand and growing adoption in the inference market are likely to have been tailwinds during the to-be-reported quarter.

Additionally, the pandemic-induced remote-working wave is likely to have bolstered sales of graphic chips utilized in desktops and laptops. This, in turn, is anticipated to have aided the quarterly performance.

Nonetheless, disruptions in retail channel sales due to lockdown and social-distancing measures implemented by governments across the world to contain the spread of coronavirus might have partially offset the benefit of solid demand for the remote-working and online-learning hardware infrastructure.

What Our Model Says

Our proven model does not predict an earnings beat for NVIDIA this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

NVIDIA currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

3D Systems Corporation (DDD - Free Report) has an Earnings ESP of +29.63% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Workday, Inc. (WDAY - Free Report) has an Earnings ESP of +1.16% and carries a Zacks Rank of 2, currently.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +6.90% and currently holds a Zacks Rank of 3.

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