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For the fiscal third quarter, the company expects revenues of $16 billion (+/-2%). The Zacks Consensus Estimate is pegged at $16.12 billion, indicating a whopping 171.7% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings is pegged at $3.34 per share. This suggests year-over-year growth of 475.9% from the year-ago quarter’s earnings of 58 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 9.8%.
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 third-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 $12.5 billion, indicating robust year-over-year growth of 226.2%.
Moreover, NVIDIA’s third-quarter performance is likely to have benefited from the recovery across its Gaming and Professional Visualization end markets. The Gaming end market’s last two 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 22% year over year while growing 11% sequentially to $2.94 billion in the second quarter of fiscal 2024. Our third-quarter revenue estimate for the Gaming end market stands at $2.78 billion, implying a 76.5% increase from the year-ago quarter.
NVIDIA’s Professional Visualization segment performance also reflected recovery, with revenues increasing 28% sequentially in the second quarter. We believe that the trend is likely to have continued in the third quarter for the end market. Our third-quarter revenue estimate for the Professional Visualization end market is pegged at $416.8 million, suggesting a 108.4% increase from the year-ago quarter.
Further, the company’s Automotive segment showed an improvement in trends in seven of the last nine quarters. The positive trend is likely to have continued in the fiscal third quarter, mainly due to increasing investments in self-driving and AI cockpit solutions. Our third-quarter revenue estimate for the Automotive end market is pegged at $257.7 million, indicating year-over-year growth of 2.7%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NVIDIA this 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. However, that’s not the case here.
Though NVDA currently sports a Zacks Rank of 1, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Synopsys (SNPS - Free Report) , Snowflake (SNOW - Free Report) and Keysight Technologies (KEYS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Synopsys carries a Zacks Rank #2 and has an Earnings ESP of +0.94%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 29. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ fourth-quarter earnings is pegged at $3.04 per share, indicating a year-over-year increase of 59.2%. The consensus mark for revenues stands at $1.58 billion, suggesting a year-over-year surge of 23.3%.
Snowflake is slated to report third-quarter fiscal 2024 results on Nov 29. The company has a Zacks Rank #2 and an Earnings ESP of +67.33% at present. Snowflake’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 244.5%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 16 cents per share, suggesting an increase of 45.6% from the year-ago quarter’s earnings of 11 cents. Snowflake’s quarterly revenues are estimated to grow 27.6% year over year to $710.5 million.
Keysight carries a Zacks Rank #3 and has an Earnings ESP of +0.18%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 20. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 8.3%.
The Zacks Consensus Estimate for Keysight’s fourth-quarter earnings stands at $1.87 per share, indicating a year-over-year decline of 12.6%. It is estimated to report revenues of $1.3 billion, which suggests a decrease of approximately 10% from the year-ago quarter.
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NVIDIA (NVDA) to Report Q3 Earnings: What's in the Offing?
NVIDIA Corporation (NVDA - Free Report) is slated to report third-quarter fiscal 2024 results after market close on Nov 21.
For the fiscal third quarter, the company expects revenues of $16 billion (+/-2%). The Zacks Consensus Estimate is pegged at $16.12 billion, indicating a whopping 171.7% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings is pegged at $3.34 per share. This suggests year-over-year growth of 475.9% from the year-ago quarter’s earnings of 58 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 9.8%.
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 Consider
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 third-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 $12.5 billion, indicating robust year-over-year growth of 226.2%.
Moreover, NVIDIA’s third-quarter performance is likely to have benefited from the recovery across its Gaming and Professional Visualization end markets. The Gaming end market’s last two 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 22% year over year while growing 11% sequentially to $2.94 billion in the second quarter of fiscal 2024. Our third-quarter revenue estimate for the Gaming end market stands at $2.78 billion, implying a 76.5% increase from the year-ago quarter.
NVIDIA’s Professional Visualization segment performance also reflected recovery, with revenues increasing 28% sequentially in the second quarter. We believe that the trend is likely to have continued in the third quarter for the end market. Our third-quarter revenue estimate for the Professional Visualization end market is pegged at $416.8 million, suggesting a 108.4% increase from the year-ago quarter.
Further, the company’s Automotive segment showed an improvement in trends in seven of the last nine quarters. The positive trend is likely to have continued in the fiscal third quarter, mainly due to increasing investments in self-driving and AI cockpit solutions. Our third-quarter revenue estimate for the Automotive end market is pegged at $257.7 million, indicating year-over-year growth of 2.7%.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for NVIDIA this 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. However, that’s not the case here.
Though NVDA currently sports a Zacks Rank of 1, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Per our model, Synopsys (SNPS - Free Report) , Snowflake (SNOW - Free Report) and Keysight Technologies (KEYS - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
Synopsys carries a Zacks Rank #2 and has an Earnings ESP of +0.94%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 29. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 4.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Synopsys’ fourth-quarter earnings is pegged at $3.04 per share, indicating a year-over-year increase of 59.2%. The consensus mark for revenues stands at $1.58 billion, suggesting a year-over-year surge of 23.3%.
Snowflake is slated to report third-quarter fiscal 2024 results on Nov 29. The company has a Zacks Rank #2 and an Earnings ESP of +67.33% at present. Snowflake’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 244.5%.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 16 cents per share, suggesting an increase of 45.6% from the year-ago quarter’s earnings of 11 cents. Snowflake’s quarterly revenues are estimated to grow 27.6% year over year to $710.5 million.
Keysight carries a Zacks Rank #3 and has an Earnings ESP of +0.18%. The company is scheduled to report fourth-quarter fiscal 2023 results on Nov 20. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 8.3%.
The Zacks Consensus Estimate for Keysight’s fourth-quarter earnings stands at $1.87 per share, indicating a year-over-year decline of 12.6%. It is estimated to report revenues of $1.3 billion, which suggests a decrease of approximately 10% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.