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Why NVIDIA Corp (NVDA) is Poised to Beat Earnings Estimates Again

Looking for a stock that might be in a good position to beat earnings at its next report? Consider NVIDIA CorporationNVDA , a firm in the a visual computing industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, NVDA has beaten estimates by at least 60% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, NVDA expected to earn 11 cents per share, while it actually produced earnings of 26 cents per share, a beat of more than 100%. Meanwhile, for the most recent quarter, the company looked to post earnings of 25 cents per share, when it actually saw earnings of 40 cents per share instead, again representing a positive surprise of 60%.

Thanks in part to this history, recent estimates have been moving higher for NVIDIA Corp. In fact, the Earnings ESP for NVDA is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for NVDA, as the firm currently has a Zacks Earnings ESP of 6.06%, so another beat could be around the corner.

This is particularly true when you consider that NVDA has a great Zacks Rank #1 (Strong Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive Earnings ESP, a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that NVDA could see another beat at its next report, especially if recent trends are any guide.

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NVIDIA CORP (NVDA): Free Stock Analysis Report

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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.


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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