Leading designer of graphics chips Nvidia (NASDAQ: NVDA) will be reporting earnings tomorrow afternoon. Here’s what you need to know.
Nvidia beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $39.33 billion, up 77.9% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EPS estimates but an increase in its inventory levels.
Is Nvidia a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nvidia’s revenue to grow 66.5% year on year to $43.37 billion, slowing from the 262% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.73 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nvidia has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8.4% on average.
Looking at Nvidia’s peers in the processors and graphics chips segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Allegro MicroSystems’s revenues decreased 19.9% year on year, beating analysts’ expectations by 4.3%, and Qorvo reported a revenue decline of 7.6%, topping estimates by 2.2%. Allegro MicroSystems traded up 19.5% following the results while Qorvo was also up 14.4%.
Read our full analysis of Allegro MicroSystems’s results here and Qorvo’s results here.
There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 10% on average over the last month. Nvidia is up 20.6% during the same time and is heading into earnings with an average analyst price target of $162.77 (compared to the current share price of $131.17).
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