Leading designer of graphics chips Nvidia (NASDAQ: NVDA) will be reporting results this Wednesday after market close. Here’s what investors should know.
Nvidia beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $44.06 billion, up 69.2% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
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 54.6% year on year to $46.45 billion, slowing from the 122% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.01 per share.
The majority of analysts covering the company have 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 7.3% on average.
Looking at Nvidia’s peers in the processors and graphics chips segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Qorvo’s revenues decreased 7.7% year on year, beating analysts’ expectations by 5.3%, and Lattice Semiconductor reported flat revenue, in line with consensus estimates. Qorvo traded up 2.3% following the results while Lattice Semiconductor was also up 15.2%.
Read our full analysis of Qorvo’s results here and Lattice Semiconductor’s results here.
Investors in the processors and graphics chips segment have had steady hands going into earnings, with share prices up 1.8% on average over the last month. Nvidia is up 2% during the same time and is heading into earnings with an average analyst price target of $192.59 (compared to the current share price of $180.30).
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