Market Overview

What To Expect From Nvidia's Q2 Earnings

What To Expect From Nvidia's Q2 Earnings

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

Oct 2019MaintainsBuy
Oct 2019MaintainsOutperform
Oct 2019MaintainsOutperform

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!
Fastest Market News Application
You'll Hear It First On Pro
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
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.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at

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

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