Home > Boards > US Listed > Computers - Semiconductors > NVIDIA Corp. (NVDA)

Analysts Estimate Nvidia (NVDA) to Report a Decline

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
DiscoverGold Member Profile
 
Followed By 132
Posts 50,503
Boards Moderated 31
Alias Born 03/10/04
160x600 placeholder
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 6/18/2019 6:12:47 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 6/17/2019 6:50:35 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 6/17/2019 4:28:52 PM
NVIDIA Names Donald Robertson as Chief Accounting Officer GlobeNewswire Inc. - 6/17/2019 4:20:00 PM
NVIDIA Brings CUDA to Arm, Enabling New Path to Exascale Supercomputing GlobeNewswire Inc. - 6/17/2019 3:00:00 AM
Broadcom Guidance Weighs on Semiconductor ETFs Dow Jones News - 6/14/2019 2:46:00 PM
CD PROJEKT RED and NVIDIA Partner to Bring Ray Tracing to ‘Cyberpunk 2077’ GlobeNewswire Inc. - 6/11/2019 3:00:00 PM
‘Watch Dogs: Legion’ to Support DirectX Raytracing on PC, Powered by NVIDIA GeForce RTX GlobeNewswire Inc. - 6/10/2019 5:15:00 PM
‘Quake II RTX,’ NVIDIA’s Reimagining of PC Gaming Classic with Ray-Traced Graphics, Available Now GlobeNewswire Inc. - 6/6/2019 9:00:00 AM
‘Call of Duty: Modern Warfare’ to Support DirectX Raytracing on PC, Powered by NVIDIA GeForce RTX GlobeNewswire Inc. - 6/5/2019 1:00:00 PM
Huawei's Main Chip Maker Faces Long-Term Risks From U.S. Ban Dow Jones News - 6/2/2019 6:00:00 AM
Specialized Disclosure Report (sd) Edgar (US Regulatory) - 5/31/2019 4:08:58 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 5/29/2019 4:23:13 PM
3 Huge Markets, 1 Company InvestorsHub NewsWire - 5/29/2019 11:50:17 AM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:28:35 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:27:39 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:27:26 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:26:41 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:26:01 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:25:23 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:24:31 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/28/2019 6:23:56 PM
AI Plays You Should Know InvestorsHub NewsWire - 5/28/2019 10:01:53 AM
NVIDIA Earns Double Wins with Computex ‘Best Choice’ Awards GlobeNewswire Inc. - 5/28/2019 12:50:29 AM
NVIDIA Launches Edge Computing Platform to Bring Real-Time AI to Global Industries GlobeNewswire Inc. - 5/27/2019 3:30:00 AM
DiscoverGold   Friday, 05/10/19 04:17:12 PM
Re: None
Post # of 3288 
Analysts Estimate Nvidia (NVDA) to Report a Decline in Earnings: What to Look Out for
By: Zacks Equity Research | May 9, 2019

The market expects Nvidia (NVDA) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended April 2019. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 16. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus Estimate

This maker of graphics chips for gaming and artificial intelligence is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of -60%.

Revenues are expected to be $2.20 billion, down 31.4% from the year-ago quarter.

Estimate Revisions Trend

The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise



Earnings Whisper

Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Nvidia?

For Nvidia, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Nvidia will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?

While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Nvidia would post earnings of $0.75 per share when it actually produced earnings of $0.80, delivering a surprise of +6.67%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom Line

An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Nvidia doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Read Full Story »»»

DiscoverGold

Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist