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NVIDIA Brings the Goods on Q3 Earnings; URBN Beats, JWN Mixed
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Markets ended the winning streaks for the S&P 500 and Nasdaq today, with three of the four major indices only down marginally: the Dow finished -62 points lower, -0.18%, the S&P 500 was -0.20% and the Nasdaq closed -84 points, -0.59%. Only the small-cap Russell 2000 dropped -1.23% for the session. It is the only index currently down over the past five trading days, but is still +7% over the past month.
The market was beset by two pieces of bad news today which held the potential to do more damage than they did: Fed minutes released this afternoon reflected no appetite for the monetary policy body to lower interest rates (though neither was there any indication of any future rate hikes evident), and Binance faced federal money laundering charges, and its CEO Changpeng Zhao (“CZ”) has pled guilty and agreed to step down from the company. Remember it was CZ pursuing the ownership of FTX that began to unwind that company, whose conviction has a sentencing date of late March next year.
There were also a bevy of earnings reports out this morning, mostly from specialty retailers such as Best Buy (BBY - Free Report) , Dick’s Sporting Goods (DKS - Free Report) , Lowe’s (LOW - Free Report) , etc. But the real marquee name reporting for Q3 today is out this afternoon after the closing bell: graphics chips giant NVIDIA (NVDA - Free Report) . The Zacks Rank #1 (Strong Buy)-rated company was up roughly +240% year to date ahead of this report.
Good news for NVIDIA owners: the company was able to outdo even its extraordinary expectations in the quarter: earnings of $4.02 per share easily surpassed the $3.36 expected, and represented a whopping +693% earnings growth year over year. Revenues of $18.12 billion left estimates of $16.19 billion in the dust, beating the +173% sales growth expected by nearly $2 billion. Further, revenue guidance for Q4 was cranked up to $20 billion from $17.85 billion anticipated.
Even more impressive for these eye-popping numbers: they did so without the help of positive guidance for its China-based sales, which are now expected to decline in Q4. However, the company expects revenues will be offset by gains in other regions, as demonstrated by the raised sales guidance. Data Center revenues in Q3 — a very important metric for NVIDIA — blew past the $13 billion expected to $14.5 billion. Gross Margins (GM) came in +75% (guidance for Q4 GM is almost as good: +74.5%). These are the sorts of grand-slam numbers only a company like Apple in its prime were able to print.
Elsewhere, Nordstrom (JWN - Free Report) nearly doubled earnings expectations in its Q3 report this afternoon to 25 cents per share (13 cents expected), but revenues missed estimates by nearly -3%, coming in -7% year over year. Flagship store sales were down, with Nordstrom Rack sales falling by a slimmer -1.8%. Gross Margins, however, stayed positive year over year. Also, Urban Outfitters (URBN - Free Report) beat on both top and bottom lines — earnings of 88 cents versus 81 expected on $1.28 billion is sales versus $1.26 billion estimated — sent shares up marginally in late trading.
Image: Bigstock
NVIDIA Brings the Goods on Q3 Earnings; URBN Beats, JWN Mixed
Markets ended the winning streaks for the S&P 500 and Nasdaq today, with three of the four major indices only down marginally: the Dow finished -62 points lower, -0.18%, the S&P 500 was -0.20% and the Nasdaq closed -84 points, -0.59%. Only the small-cap Russell 2000 dropped -1.23% for the session. It is the only index currently down over the past five trading days, but is still +7% over the past month.
The market was beset by two pieces of bad news today which held the potential to do more damage than they did: Fed minutes released this afternoon reflected no appetite for the monetary policy body to lower interest rates (though neither was there any indication of any future rate hikes evident), and Binance faced federal money laundering charges, and its CEO Changpeng Zhao (“CZ”) has pled guilty and agreed to step down from the company. Remember it was CZ pursuing the ownership of FTX that began to unwind that company, whose conviction has a sentencing date of late March next year.
There were also a bevy of earnings reports out this morning, mostly from specialty retailers such as Best Buy (BBY - Free Report) , Dick’s Sporting Goods (DKS - Free Report) , Lowe’s (LOW - Free Report) , etc. But the real marquee name reporting for Q3 today is out this afternoon after the closing bell: graphics chips giant NVIDIA (NVDA - Free Report) . The Zacks Rank #1 (Strong Buy)-rated company was up roughly +240% year to date ahead of this report.
Good news for NVIDIA owners: the company was able to outdo even its extraordinary expectations in the quarter: earnings of $4.02 per share easily surpassed the $3.36 expected, and represented a whopping +693% earnings growth year over year. Revenues of $18.12 billion left estimates of $16.19 billion in the dust, beating the +173% sales growth expected by nearly $2 billion. Further, revenue guidance for Q4 was cranked up to $20 billion from $17.85 billion anticipated.
Even more impressive for these eye-popping numbers: they did so without the help of positive guidance for its China-based sales, which are now expected to decline in Q4. However, the company expects revenues will be offset by gains in other regions, as demonstrated by the raised sales guidance. Data Center revenues in Q3 — a very important metric for NVIDIA — blew past the $13 billion expected to $14.5 billion. Gross Margins (GM) came in +75% (guidance for Q4 GM is almost as good: +74.5%). These are the sorts of grand-slam numbers only a company like Apple in its prime were able to print.
Elsewhere, Nordstrom (JWN - Free Report) nearly doubled earnings expectations in its Q3 report this afternoon to 25 cents per share (13 cents expected), but revenues missed estimates by nearly -3%, coming in -7% year over year. Flagship store sales were down, with Nordstrom Rack sales falling by a slimmer -1.8%. Gross Margins, however, stayed positive year over year. Also, Urban Outfitters (URBN - Free Report) beat on both top and bottom lines — earnings of 88 cents versus 81 expected on $1.28 billion is sales versus $1.26 billion estimated — sent shares up marginally in late trading.
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