Nvidia’s Mixed Results

Semiconductor stocks have rebounded sharply over the last few weeks. But have their earnings improved enough to beat their lowered expectations?

Let’s see what Nvidia had to say.

On the earnings front, adjusted earnings per share of $0.59 missed expectations of $0.69. An inventory charge drove the profit miss due to China’s low demand for data center chips. 🔻

Nvidia’s revenue of $5.93 billion beat the $5.77 billion expected. And while gaming revenue continues to struggle with tough pandemic comps, its data center business saw a 31% YoY increase to $3.83 billion. Driving that demand growth was U.S. cloud service providers and consumer internet companies. Automotive growth of 86% YoY was also a nice kicker, though it remains a tiny portion of the business at $251 million in sales.

Looking ahead, the company expects fourth-quarter revenue of $6.00 billion, just shy of the $6.09 billion consensus view. It continues to adjust to macroeconomic conditions, which are impacting several of its major business lines.

Overall, the after-hours move in $NVDA shares reflects the company’s mixed results. While investors are certainly happy it’s no longer missing estimates by a wide margin, they also recognize the bar was set pretty low. As investors look for signs of a semiconductor cycle trough, we’ll have to see what the coming quarter brings. 🤷

More in   Earnings

View All

Mongo Dips Bigly Following Earnings

Software company MongoDB reported fourth-quarter results that beat expectations. But its outlook left investors wanting more… 😑

The company reported adjusted earnings per share of $0.57 and revenues of $361.3 million. The consensus estimate was $0.07 and $339.3 million. 👍

Read It

Early Morning Risers

It was a rough day in the markets, but several stocks started the morning off strong and remained so throughout the day.

The first was Sea Ltd., which operates one of Southeast Asia’s largest e-commerce and digital entertainment platforms. 🛒

Read It

Retailers Mixed In Hitting Their Target

After weak results and forecasts from Walmart and Home Depot last week, Target added to the market’s concern about consumers. ⚠️

The retailer reported holiday-quarter earnings and revenue that topped expectations. Adjusted earnings per share of $1.89 and revenue of $31.4 billion beat the $1.40 and $30.72 billion Wall Street consensus. It’s important to note that those expectations had been ratcheted down over the last year as the company adjusted to the changing environment. ↘️

Read It