US Earnings Preview: NVIDIA's Quarterly Results Analysis
NVIDIA's stock has been on a remarkable ascent, climbing nearly 50% since the beginning of the year as it capitalizes on the surging demand for AI technology.
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2/17/20243 min read
US Earnings Preview: NVIDIA's Quarterly Results Analysis
Key Points:
1. NVIDIA is set to announce its fourth-quarter results for fiscal year 2024 on February 21, 2024.
2. The company's stock has seen a remarkable surge, up nearly 50% year-to-date, largely driven by the growing demand for AI technology. Major financial institutions like Goldman Sachs and Bank of America have upgraded their price targets for NVIDIA, contributing to this bullish trend.
3. Analyst forecasts for NVIDIA's Q4 2024 results indicate an anticipated total revenue of $20.322 billion, with earnings per share projected at $4.55.
4. NVIDIA's stock is presently trading at a premium compared to analysts' average price targets, signaling the possibility of the stock price falling short of market expectations.
5. Based on data from 38 Wall Street analysts, the average price target for NVIDIA stands at $689.87.
When Can We Expect NVIDIA's Results?
NVIDIA, a prominent technology company listed on Nasdaq, is scheduled to release its fourth-quarter fiscal 2024 (Q4 2024) results on Wednesday, February 21, 2024. Let's delve into what analysts anticipate.
NVIDIA's stock has been on a remarkable ascent, climbing nearly 50% since the beginning of the year as it capitalizes on the surging demand for AI technology.
The company's remarkable growth trajectory has been fueled by optimistic price target upgrades from esteemed financial institutions like Goldman Sachs and Bank of America. These bullish endorsements have significantly bolstered investor confidence and propelled NVIDIA's stock to new heights.
However, it's crucial to note that NVIDIA's shares (NVDA) are presently trading at a premium compared to analysts' average price targets. This sets the stage for a critical juncture: the impending earnings announcement. For NVIDIA to maintain its elevated share price, it's imperative that the company's performance meets or exceeds the high expectations set by Wall Street.
According to Refinitiv data, the consensus analyst estimates for NVIDIA's Q4 2024 results are as follows:
- Total revenue: $20.322 billion
- Earnings per share: $4.55
NVIDIA’s guidance for Q4 2024, as per its Q3 2024 results, includes:
- Expected revenue of $20.00 billion, with a variance of plus or minus 2%.
- Anticipated GAAP and non-GAAP gross margins of 74.5% and 75.5%, respectively, with a variance of plus or minus 50 basis points.
- Estimated GAAP and non-GAAP operating expenses of approximately $3.17 billion and $2.20 billion, respectively.
- Predicted GAAP and non-GAAP other income and expenses of approximately $200 million, excluding gains and losses from non-affiliated investments.
- Expected GAAP and non-GAAP tax rates of 15.0%, with a variance of plus or minus 1%, excluding any discrete items.
Trading Strategy for NVIDIA's Results
Based on analysis from 38 Wall Street analysts over the past three months, the average price target for Nvidia stands at US$689.87, with a high forecast of US$1,100.00 and a low forecast of US$560.00.
As of February 14, 2024, fifty-nine percent of IG clients with open positions on NVIDIA anticipate the share price to rise in the near term, while forty-one percent expect it to fall. While the stock price has seen exponential growth in 2024, technical analysis suggests the possibility of a correction or consolidation in the short term.
Despite potential short-term fluctuations, the long-term trend for NVIDIA remains bullish. Traders may consider any temporary weakness as an opportunity to accumulate stock, aligning with the overall upward trajectory of the company.111