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NVIDIA Beats, After-Hours Yawns; PANW and SNOW Report, Too
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Wednesday, November 20, 2024
Market indexes were flat on the day today, with some mixed big-box retail earnings numbers from Target (TGT - Free Report) which missed and TJX Companies (TJX - Free Report) which beat, but without a lot to hang our hat on. The major indexes were in the red most of the day; only the Nasdaq was (slightly) there at the close.
The Dow gained +139 points on the session, +0.32%, while the S&P 500 was virtually flat at +0.008% at the close and the small-cap Russell 2000 was +0.045% on the day. The Nasdaq posted a minor negative, -21 points or -0.11%. Bond yields remain tame at +4.412% on the 10-year and +4.319% on the 2-year.
NVIDIA Beats Q3 Estimates Once Again
NVIDIA (NVDA - Free Report) outperformed expectations for its eight straight earnings beat this afternoon, posting earnings of 81 cents per share versus 75 cents expected. This amounted to a year-over-year earnings gain of +103%. Revenues in the quarter grew to $35.1 billion, nicely above the anticipated $33.2 billion.
In the quarter, revenue for NVIDIA’s Data Center grew +94% year over year and +17% quarter after quarter, to $30.8 billion. Non-GAAP Gross Margins guidance came in up +73.5%. And next-quarter revenue is now forecast to $37.5 billion. A damn good quarter, any way you slice it.
Yet NVDA shares bounced around lower for a while on the news, currently -2% in late trading. This often happens when a company is up +53% in just the past six months; NVDA is up +200% year to date. This follows a previous stellar year in the market. In fact, the stock is up +2600% in the past five years. And still a Zacks Rank #1 (Strong Buy).
Palo Alto Networks, Snowflake Also Top Earnings Estimates
Not to be outdone, Zacks Rank #2 (Buy)-rated cybersecurity firm Palo Alto Networks (PANW - Free Report) also posted a fiscal Q1 earnings beat in its fiscal Q1 this afternoon: earnings of $1.56 per share surpassed the Zacks consensus $1.48 and the $1.38 per share reported in the year-ago quarter.
Revenues were in-line with expectations at $2.1 billion, which may be the reason why shares are selling off -5% on the news. Guidance pushed higher the top of its ranges — most impressively on full-year earnings up to $6.39 per share — with Next Generation Security ARR at the company +40% and guiding higher. Palo Alto also announced a 2-for-1 stock split.
Montana-based software company Snowflake (SNOW - Free Report) outpaced Q3 expectations on both top and bottom lines, with shares climbing +18% on the news in after-hours trading. Earnings of 22 cents a share outdid the Zacks consensus by 7 cents, while $900.3 million in revenues grew +29% year over year and beat the consensus $898.77 million. The company reported a Net Revenue Retention Rate of +127%.
Image: Bigstock
NVIDIA Beats, After-Hours Yawns; PANW and SNOW Report, Too
Wednesday, November 20, 2024
Market indexes were flat on the day today, with some mixed big-box retail earnings numbers from Target (TGT - Free Report) which missed and TJX Companies (TJX - Free Report) which beat, but without a lot to hang our hat on. The major indexes were in the red most of the day; only the Nasdaq was (slightly) there at the close.
The Dow gained +139 points on the session, +0.32%, while the S&P 500 was virtually flat at +0.008% at the close and the small-cap Russell 2000 was +0.045% on the day. The Nasdaq posted a minor negative, -21 points or -0.11%. Bond yields remain tame at +4.412% on the 10-year and +4.319% on the 2-year.
NVIDIA Beats Q3 Estimates Once Again
NVIDIA (NVDA - Free Report) outperformed expectations for its eight straight earnings beat this afternoon, posting earnings of 81 cents per share versus 75 cents expected. This amounted to a year-over-year earnings gain of +103%. Revenues in the quarter grew to $35.1 billion, nicely above the anticipated $33.2 billion.
In the quarter, revenue for NVIDIA’s Data Center grew +94% year over year and +17% quarter after quarter, to $30.8 billion. Non-GAAP Gross Margins guidance came in up +73.5%. And next-quarter revenue is now forecast to $37.5 billion. A damn good quarter, any way you slice it.
Yet NVDA shares bounced around lower for a while on the news, currently -2% in late trading. This often happens when a company is up +53% in just the past six months; NVDA is up +200% year to date. This follows a previous stellar year in the market. In fact, the stock is up +2600% in the past five years. And still a Zacks Rank #1 (Strong Buy).
Check out the updated Zacks Earnings Calendar here.
Palo Alto Networks, Snowflake Also Top Earnings Estimates
Not to be outdone, Zacks Rank #2 (Buy)-rated cybersecurity firm Palo Alto Networks (PANW - Free Report) also posted a fiscal Q1 earnings beat in its fiscal Q1 this afternoon: earnings of $1.56 per share surpassed the Zacks consensus $1.48 and the $1.38 per share reported in the year-ago quarter.
Revenues were in-line with expectations at $2.1 billion, which may be the reason why shares are selling off -5% on the news. Guidance pushed higher the top of its ranges — most impressively on full-year earnings up to $6.39 per share — with Next Generation Security ARR at the company +40% and guiding higher. Palo Alto also announced a 2-for-1 stock split.
Montana-based software company Snowflake (SNOW - Free Report) outpaced Q3 expectations on both top and bottom lines, with shares climbing +18% on the news in after-hours trading. Earnings of 22 cents a share outdid the Zacks consensus by 7 cents, while $900.3 million in revenues grew +29% year over year and beat the consensus $898.77 million. The company reported a Net Revenue Retention Rate of +127%.
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