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Earnings season continues to chug along, with an extensive list of companies reporting daily.
We’re well into the season now, but there still remains a large number of companies yet to report.
One such company, NVIDIA (NVDA - Free Report) , is slated to unveil quarterly results on Wednesday, February 22nd, after the market close.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the highly-successful graphic processing unit, or GPU.
How does the company stack up heading into the release? We can use results from a peer, Advanced Micro Devices (AMD - Free Report) , as a small gauge. Let’s take a closer look.
Advanced Micro Devices
AMD posted better-than-expected results, surpassing the Zacks Consensus EPS Estimate by more than 4% and reporting EPS of $0.69.
Quarterly revenue totaled $5.6 billion, exceeding our consensus estimate by roughly 1.6% and growing 17% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, cash from operations totaled $567 million, down from $822 million in the year-ago quarter. AMD generated roughly $443 million in free cash flow, again down from the $736 million figure from Q4 2021.
And to top it off, AMD ended the quarter with cash and equivalents of $5.9 billion, up 62% year-over-year.
Image Source: Zacks Investment Research
Still, the company’s Data Center revenue was a focal point of the release. Data Center revenue totaled $1.7 billion for the quarter, growing 42% year-over-year on the back of strong sales of EPYC server processors.
In addition, the reported $1.7 billion figure nicely beat our consensus estimate of $1.6 billion by nearly 5%.
Now, onto NVIDIA.
NVIDIA Q4
Data Center Revenue –
For the quarter, our consensus estimate for NVDA’s Data Center revenue stands at $3.9 billion, implying a positive change of 18% year-over-year.
As we can see in the chart below, the company has struggled to exceed estimates within the metric in recent quarters.
Image Source: Zacks Investment Research
Quarterly Estimates –
Analysts have remained silent for the quarter to be reported, with zero earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $0.81 suggests a nearly 39% decline in earnings year-over-year.
Image Source: Zacks Investment Research
In addition, our consensus revenue estimate resides at $6 billion, indicating a pullback of 21% year-over-year.
Quarterly Performance –
NVIDIA has posted mixed earnings results as of late, falling short of the Zacks Consensus EPS Estimate in back-to-back quarters but exceeding revenue expectations in both instances.
In its latest release, the chip giant fell short of earnings expectations by 17% and reported revenue marginally above expectations.
Image Source: Zacks Investment Research
Valuation –
Currently, NVDA shares trade at a 73.7X forward earnings multiple, undoubtedly on the high end of the spectrum and above the 50.3X five-year median.
Image Source: Zacks Investment Research
In addition, the company’s forward price-to-sales works out to be 19.4X currently, above the 13.7X five-year median.
Image Source: Zacks Investment Research
NVDA carries a Value Style Score of “F.”
Putting Everything Together
Earnings season continues to roll along, with a wide variety of companies reporting daily.
Next week on Wednesday, February 22nd, after the market close, we’ll receive Q4 results from NVIDIA.
We’ve already received results from a peer, Advanced Micro Devices (AMD - Free Report) , with the company exceeding revenue estimates within its Data Center operations.
Analysts have been silent for NVDA’s quarter, with estimates suggesting year-over-year pullbacks in earnings and revenue.
In addition, the company has fallen short of bottom-line estimates as of late but has consistently delivered better-than-expected revenue results.
Heading into the release, NVIDIA (NVDA - Free Report) is a Zacks Rank #4 (Sell) with an Overall VGM Score of “F”.
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NVIDIA Q4 Preview: Rebound Quarter Inbound?
Earnings season continues to chug along, with an extensive list of companies reporting daily.
We’re well into the season now, but there still remains a large number of companies yet to report.
One such company, NVIDIA (NVDA - Free Report) , is slated to unveil quarterly results on Wednesday, February 22nd, after the market close.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the highly-successful graphic processing unit, or GPU.
How does the company stack up heading into the release? We can use results from a peer, Advanced Micro Devices (AMD - Free Report) , as a small gauge. Let’s take a closer look.
Advanced Micro Devices
AMD posted better-than-expected results, surpassing the Zacks Consensus EPS Estimate by more than 4% and reporting EPS of $0.69.
Quarterly revenue totaled $5.6 billion, exceeding our consensus estimate by roughly 1.6% and growing 17% year-over-year. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
In addition, cash from operations totaled $567 million, down from $822 million in the year-ago quarter. AMD generated roughly $443 million in free cash flow, again down from the $736 million figure from Q4 2021.
And to top it off, AMD ended the quarter with cash and equivalents of $5.9 billion, up 62% year-over-year.
Image Source: Zacks Investment Research
Still, the company’s Data Center revenue was a focal point of the release. Data Center revenue totaled $1.7 billion for the quarter, growing 42% year-over-year on the back of strong sales of EPYC server processors.
In addition, the reported $1.7 billion figure nicely beat our consensus estimate of $1.6 billion by nearly 5%.
Now, onto NVIDIA.
NVIDIA Q4
Data Center Revenue –
For the quarter, our consensus estimate for NVDA’s Data Center revenue stands at $3.9 billion, implying a positive change of 18% year-over-year.
As we can see in the chart below, the company has struggled to exceed estimates within the metric in recent quarters.
Image Source: Zacks Investment Research
Quarterly Estimates –
Analysts have remained silent for the quarter to be reported, with zero earnings estimate revisions coming in over the last several months. The Zacks Consensus EPS Estimate of $0.81 suggests a nearly 39% decline in earnings year-over-year.
Image Source: Zacks Investment Research
In addition, our consensus revenue estimate resides at $6 billion, indicating a pullback of 21% year-over-year.
Quarterly Performance –
NVIDIA has posted mixed earnings results as of late, falling short of the Zacks Consensus EPS Estimate in back-to-back quarters but exceeding revenue expectations in both instances.
In its latest release, the chip giant fell short of earnings expectations by 17% and reported revenue marginally above expectations.
Image Source: Zacks Investment Research
Valuation –
Currently, NVDA shares trade at a 73.7X forward earnings multiple, undoubtedly on the high end of the spectrum and above the 50.3X five-year median.
Image Source: Zacks Investment Research
In addition, the company’s forward price-to-sales works out to be 19.4X currently, above the 13.7X five-year median.
Image Source: Zacks Investment Research
NVDA carries a Value Style Score of “F.”
Putting Everything Together
Earnings season continues to roll along, with a wide variety of companies reporting daily.
Next week on Wednesday, February 22nd, after the market close, we’ll receive Q4 results from NVIDIA.
We’ve already received results from a peer, Advanced Micro Devices (AMD - Free Report) , with the company exceeding revenue estimates within its Data Center operations.
Analysts have been silent for NVDA’s quarter, with estimates suggesting year-over-year pullbacks in earnings and revenue.
In addition, the company has fallen short of bottom-line estimates as of late but has consistently delivered better-than-expected revenue results.
Heading into the release, NVIDIA (NVDA - Free Report) is a Zacks Rank #4 (Sell) with an Overall VGM Score of “F”.