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Well, if you were wondering why you had been hearing so much hoopla about NVIDIA (NVDA - Free Report) and its earnings report after the bell this Hump Day — the market had high expectations for the quarter: +8.5% on Monday in anticipation of +300% earnings per share gains year over year, etc. But NVIDIA took those expectations and completely blew them out of the water.
Earnings of $2.70 per share beat those lofty expectations by +29% on the quarter, and an astounding +429% from $0.51 per share reported in the year-ago quarter. Revenues were even more staggering: $13.51 billion, easily sweeping past the $11.17 billion in the Zacks consensus, but +101% revenue growth year over year. And sales increased an astonishing +88% from just the previous quarter! This, from a company with a market cap of almost $1.3 TRILLION. Simply stated, no one does things like this.
Key to this report was the record-setting revenues from the Data Center segment, which, at $10.32 billion for Q2, amounted to an increase of +141% from the previous quarter. And, of course, we know the A.I. development — of which NVIDIA is the clear leader — resides in its Data Center business. We know the Tech world sees A.I. changing the overall business and social landscape, but only NVIDIA to this point can put up the figures behind it at this early stage. “A new computing era has begun,” founder and CEO Jensen Huang stated in the press release.
And NVIDIA was not finished: Q3 revenue guidance has been cranked way up to $16.00 billion, far beyond the analysts’ estimate of $12.34 billion. Additionally, the company’s board has approved $25 billion in new share repurchases, which will bring plenty of investors previously unsure of NVIDIA’s lofty valuation to the table. In fact, the company brought a Value-Growth-Momentum score of “F” into today’s report (along with a Zacks Rank #1 [Strong Buy]), but even those aspects need to be re-evaluated. Is it really an F for Value when you’re growing revenues +88% per quarter?
Shares are up on the news, predictably, although this is already one of the great success stories of 2023: +230% year to date, +14% in just the past three days BEFORE the +9.6% climb in today’s after-hours trading. Today’s report is reminiscent of the second Steve Jobs era at Apple (AAPL - Free Report) , when the company was so far ahead of the field that expectations were extraordinary, and then they obliterated those expectations anyway. This is NVIDIA’s third-straight quarterly beat, but there has never been one quite like this.
Meanwhile, cloud-based software provider Snowflake (SNOW - Free Report) has also trounced Q2 expectations in its report after today’s close, with earnings of 25 cents per share easily surpassing the 9 cents expected and the $0.01 reported in the year-ago quarter. Sales of $674 million in the quarter outperformed the $661.75 million in the Zacks consensus, and grew +36% year over year. Their full-year revenue guide was a bit light, however: $2.6 billion now expected, down from the $2.76 billion consensus. Nevertheless, shares are still up +4% in late trading.
Image: Bigstock
NVIDIA Posts Giant Q2 Beats, Guides Way Higher
Well, if you were wondering why you had been hearing so much hoopla about NVIDIA (NVDA - Free Report) and its earnings report after the bell this Hump Day — the market had high expectations for the quarter: +8.5% on Monday in anticipation of +300% earnings per share gains year over year, etc. But NVIDIA took those expectations and completely blew them out of the water.
Earnings of $2.70 per share beat those lofty expectations by +29% on the quarter, and an astounding +429% from $0.51 per share reported in the year-ago quarter. Revenues were even more staggering: $13.51 billion, easily sweeping past the $11.17 billion in the Zacks consensus, but +101% revenue growth year over year. And sales increased an astonishing +88% from just the previous quarter! This, from a company with a market cap of almost $1.3 TRILLION. Simply stated, no one does things like this.
Key to this report was the record-setting revenues from the Data Center segment, which, at $10.32 billion for Q2, amounted to an increase of +141% from the previous quarter. And, of course, we know the A.I. development — of which NVIDIA is the clear leader — resides in its Data Center business. We know the Tech world sees A.I. changing the overall business and social landscape, but only NVIDIA to this point can put up the figures behind it at this early stage. “A new computing era has begun,” founder and CEO Jensen Huang stated in the press release.
And NVIDIA was not finished: Q3 revenue guidance has been cranked way up to $16.00 billion, far beyond the analysts’ estimate of $12.34 billion. Additionally, the company’s board has approved $25 billion in new share repurchases, which will bring plenty of investors previously unsure of NVIDIA’s lofty valuation to the table. In fact, the company brought a Value-Growth-Momentum score of “F” into today’s report (along with a Zacks Rank #1 [Strong Buy]), but even those aspects need to be re-evaluated. Is it really an F for Value when you’re growing revenues +88% per quarter?
Shares are up on the news, predictably, although this is already one of the great success stories of 2023: +230% year to date, +14% in just the past three days BEFORE the +9.6% climb in today’s after-hours trading. Today’s report is reminiscent of the second Steve Jobs era at Apple (AAPL - Free Report) , when the company was so far ahead of the field that expectations were extraordinary, and then they obliterated those expectations anyway. This is NVIDIA’s third-straight quarterly beat, but there has never been one quite like this.
Meanwhile, cloud-based software provider Snowflake (SNOW - Free Report) has also trounced Q2 expectations in its report after today’s close, with earnings of 25 cents per share easily surpassing the 9 cents expected and the $0.01 reported in the year-ago quarter. Sales of $674 million in the quarter outperformed the $661.75 million in the Zacks consensus, and grew +36% year over year. Their full-year revenue guide was a bit light, however: $2.6 billion now expected, down from the $2.76 billion consensus. Nevertheless, shares are still up +4% in late trading.
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