NVIDIA Corp (NVDA)

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Earnings Preview: Nvidia Corp. (NASDAQ: NVDA)
By: 24/7 Wall St. | August 23, 2022

• Here is what to expect when these four companies report results Wednesday afternoon.

Nvidia

From their peak in late November, shares of Nvidia Corp. (NASDAQ: NVDA) have plummeted by nearly 47%. The semiconductor industry as a group has fallen by around 17% over the same period.

Earlier this month, the company said it expects its gaming division to put up lower sales than originally expected. Coupled with the 50% haircut to Bitcoin prices since late April, Nvidia has to look for growth from its data center business, where it competes with AMD and Intel, and continued success in its auto industry business. Nvidia expects to begin shipping its new Grace Hopper superchip early next year.

Of 42 analysts covering the stock, 32 have a Buy or Strong Buy rating and another nine rate the shares at Hold. At a recent price of around $170.30 a share, the upside potential based on a median price target of $220.00 is 29.2%. At the high price target of $370.00, the upside potential is 117%.

For its second quarter of fiscal 2023, Nvidia’s revenue is forecast at $6.7 billion, which would be down 19.2% sequentially but 2.9% higher year over year. Adjusted EPS are forecast at $0.50, down 63.4% sequentially and by 51.9% year over year. For the full fiscal year ending in January, analysts are looking for EPS of $3.72, down 16.2%, on sales of $29.24 billion, up 8.6%.

Nvidia stock trades at 45.8 times expected 2023 EPS, 31.3 times estimated 2024 earnings of $5.44 and 26.3 times estimated 2025 earnings of $6.47 per share. The stock’s 52-week trading range is $140.55 to $346.47. The company pays an annual dividend of $0.16 (yield of 0.09%). Total shareholder return for the past year was negative 18.1%.

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