NVIDIA (NVDA) to Report Q4 Earnings: What's in Store?

NVIDIA Corporation NVDA is slated to release fourth-quarter fiscal 2021 results on Feb 24.

For the fiscal fourth quarter, the company expects revenues of $4.8 billion (+/-2%). The Zacks Consensus Estimate for the same is also pegged at $4.83 billion, calling for 55.4% growth, year on year.

The Zacks Consensus Estimate for quarterly earnings is pinned at $2.80, suggesting a year-over-year improvement of 48.2%.

The company’s earnings beat the Zacks Consensus Estimate in all of the preceding four quarters, the average surprise being 11.5%.

NVIDIA Corporation Price and Consensus

NVIDIA Corporation Price and Consensus

NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote

Let’s see how things have shaped up prior to the announcement.

Factors at Play

NVIDIA’s fiscal fourth-quarter performance is likely to have benefited from growth across all of its business segments except the Automotive and Professional Visualization units.

The company’s growth opportunities in ray-traced gaming, rendering, high-performance computing and AI are likely to have been driving factors during the period in discussion. A series of blockbuster AAA titles, which pledged support for the NVIDIA RTX ray tracing technology, might have been a positive.

NVIDIA is also anticipated to have benefited from strength in its data-center business on the growing adoption of cloud-based solutions amid the coronavirus crisis-induced work-from-home wave. Increase in Hyperscale demand and growing adoption in the inference market are likely to have been tailwinds during the to-be-reported quarter.

Additionally, the pandemic-induced remote-working wave is likely to have bolstered sales of graphic chips utilized in desktops and laptops. This, in turn, is anticipated to have aided the quarterly performance.

Nonetheless, disruptions in retail channel sales due to lockdown and social-distancing measures implemented by governments across the world to contain the spread of coronavirus might have partially offset the benefit of solid demand for the remote-working and online-learning hardware infrastructure.

What Our Model Says

Our proven model does not predict an earnings beat for NVIDIA this season. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

NVIDIA currently carries a Zacks Rank of 4 (Sell) and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:

3D Systems Corporation DDD has an Earnings ESP of +29.63% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Workday, Inc. WDAY has an Earnings ESP of +1.16% and carries a Zacks Rank of 2, currently.

Etsy, Inc. ETSY has an Earnings ESP of +6.90% and currently holds a Zacks Rank of 3.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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