Market Overview

What To Expect From Nvidia's Q2 Earnings

Share:
What To Expect From Nvidia's Q2 Earnings
Related NVDA
Big Chip Earnings Preview: Intel, AMD Set To Report Amid Changing Competitive Landscape, Cycle Risk
Tech Sector Earnings: Revenue Growth Widely Expected To Slow, Will Global Uncertainty Weigh?
Should I Be Aiming To Buy Target? - Portfolio January 2019 Update (Seeking Alpha)

NVIDIA Corporation (NASDAQ: NVDA) is scheduled to report its second-quarter results after Thursday's close. Analysts, on average, expect EPS of $1.66 on revenue of $3.1 billion.

The Analysts

BMO Capital Markets' Ambrish Srivastava maintains a Market Perform rating on Nvidia with an unchanged $225 price target. Elsewhere, Stacey Gilbert, head of derivative trading at Susquehanna, talked options play on CNBC.

The Thesis

Srivastava is modeling Nvidia to show the following:

  • Revenue down 3 percent from the prior quarter to $3.1 billion.
  • GAAP gross margin of 63.3 percent.
  • GAAP EPS of $1.65.
  • Inventory of 77 days.
  • Cryptocurrency-related concerns will take a backseat towards other favorable drivers of the business.

Gilbert: Ordinary Reaction Expected

Shares of Nvidia are up more than 300 percent over the past two years and 32 percent since the start of 2018 alone, Gilbert said during a recent CNBC "Trading Nation" segment. Given strong expectations for continued momentum in the quarter, it's unusual the option market is pricing only a 6 percent move in either direction.

Over the past eight quarters, the stock has moved on average nearly 9 percent in either direction immediately following an earnings report, Gilbert said. The volatility priced in to Nvidia's print is the lowest the option market has seen over the past two years.

Nvidia's stock continues to outperform the broader market, but at the same time the options market is pricing in minimal risk for the stock ahead of its report.

Nvidia traded around $261.37 at time of publication Tuesday.

Related Links:

Nvidia's Q2 Likely To Be 'Noisy,' But Goldman Sachs Remains Bullish

Morgan Stanley: Nvidia 'The Cleanest Growth Story In Semis,' With New Products Ahead

Latest Ratings for NVDA

DateFirmActionFromTo
Dec 2018RBC CapitalReiteratesOutperformOutperform
Dec 2018RBC CapitalMaintainsOutperformOutperform
Nov 2018Credit SuisseInitiates Coverage OnOutperform

View More Analyst Ratings for NVDA
View the Latest Analyst Ratings

Posted-In: Analyst Color Cryptocurrency Previews Options Top Stories Markets Analyst Ratings Media Best of Benzinga

 

Related Articles (NVDA)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
QTWOKeyBancUpgrades74.0
VIPSKeyBancUpgrades10.0
ADNTRBC CapitalDowngrades16.0
DLPHRBC CapitalDowngrades17.0
MTORRBC CapitalDowngrades19.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Earnings Preview: Retail Giant Walmart To Report Q2 Results On Thursday

Raymond James: Pullback In Marriott Shares Creates Entry Point In 'Global Brand Powerhouse'