NVIDIA (NVDA) Q4 Earnings: What's In Store For The Stock?
Zacks Investment Research | Feb 10, 2019 09:31PM ET
NVIDIA Corporation (NASDAQ:NVDA) is scheduled to report fourth-quarter fiscal 2019 results on Feb 14.
In the trailing four reported quarters, the company’s earnings surpassed the Zacks Consensus Estimate thrice and missed it once, the average positive surprise being 18.6%.
Having impressed investors with a stellar performance in the last couple of years, the company has been witnessing a downward trend since last October. Further, the chip-maker has remained tremendously stressed ever since it came up with lower-than-expected results in the last reported quarter.
Notably, the company’s non-GAAP earnings per share of $1.84 missed the Zacks Consensus Estimate of $1.91. Although the figure surged 38% from the year-ago period, it declined 5% sequentially.
Revenues improved 21% year over year to $3.18 billion. However, the top line lagged the Zacks Consensus Estimate of $3.24 billion and was also lower than the management’s projection of $3.25 billion (+/-2%). Although growth across Datacenter, Professional Visualization and Automotive segments was positive, weakness in the Gaming segment was a spoiler.
Estimates and Guidance for Q4
NVIDIA recently trimmed its fourth-quarter fiscal 2019 guidance. The company cited softness in the gaming and data center spaces to be the primary reason behind the view cut. The company warned “deteriorating macroeconomic conditions, particularly in China” to be a major headwind.
The company’s previous revenue estimate of $2.7 billion (+/- 2%) was reduced to $2.2 billion (+/- 2%), indicating a fall of 24% year over year and a 31% plunge sequentially.
The Zacks Consensus Estimate is currently pegged at $2.37 billion, reflecting a year-over-year drop of almost 18.6%.
Moreover, the non-GAAP gross margin is now expected to be 56% compared with the earlier outlook of 62.5%. Margins are anticipated to be affected by around $120 million in charges for excess DRAM and other components due to the current market conditions besides the updated revenue expectation.
Further, the consensus mark for earnings currently stands at 75 cents, down 45.3% over the past 30 days.
NVIDIA Corporation Price and EPS Surprise
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