NVIDIA Corporation is poised for a potentially impressive showing when it shares its fourth-quarter fiscal 2024 results after the market closes on Feb 21. The company’s expectation of $20 billion (+/-2%) in revenues aligns with a 234% increase from the year-ago figure, as the Zacks Consensus Estimate indicates $20.21 billion. Similarly, the Zacks Consensus Estimate for quarterly earnings stands at $4.54 per share, an impressive 415.9% growth from the year-ago quarter.
NVIDIA’s earnings have surpassed the Zacks Consensus Estimate three out of the last four quarters, reflecting an average surprise of 19%. With such a track record, it’s no wonder why many are eagerly awaiting the upcoming announcement.
NVIDIA Corporation Price and EPS Surprise
Increased cloud-based adoption and the flourishing hybrid working trend have likely bolstered NVIDIA’s Datacenter business, leading to anticipated strong revenues for the fourth quarter. Notably, there’s been a surge in Hyperscale demand and growing adoption in the inference market, serving as key growth drivers for the company.
NVIDIA’s Datacenter end-market business is expected to have benefited from the heightened demand for generative AI and large language models utilizing GPUs based on NVIDIA Hopper and Ampere architectures. The company is anticipated to have met strong demand from large cloud service and consumer internet companies, contributing to significant top-line growth for this segment in the to-be-reported quarter.
Furthermore, there’s been a recovery in both the Gaming and Professional Visualization end markets, which should positively impact NVIDIA’s fourth-quarter performance. With the gaming product demand registering a strong surge across various regions and the overall Professional Visualization segment showing steady recovery, the company’s fiscal fourth quarter is expected to reflect these favorable trends.
The Automotive segment, which has demonstrated improved trends in eight of the last ten quarters, is likely to have sustained this favorable trajectory in the fiscal fourth quarter. This is mainly attributed to the escalating investments in self-driving and AI cockpit solutions.
Earnings Whispers
Our proven model anticipates an earnings beat for NVIDIA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) raises the probability of an earnings beat, as evident in NVIDIA’s case.
The Earnings ESP, representing the variance between the Most Accurate Estimate ($4.71 per share) and the Zacks Consensus Estimate ($4.54 per share), stands at +3.67%.
Alongside NVIDIA, other companies such as Synchronoss Technologies, AutoZone, and Booking Holdings are also anticipated to post an earnings beat in their upcoming releases.
Synchronoss Technologies, featuring a Zacks Rank #1 and an Earnings ESP of +157.1%, is projected to share its fourth-quarter 2023 results on Mar 5.
AutoZone, reporting second-quarter fiscal 2024 results on Feb 27, holds a Zacks Rank #3 and an Earnings ESP of +3.83%. Booking Holdings, set to announce fourth-quarter 2023 results on Feb 22, boasts a Zacks Rank #3 and an Earnings ESP of +2.07%.
As the earnings season unfolds, investors keen to stay abreast of upcoming announcements can leverage the insights provided by the Zacks Earnings Calendar.
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It’s only 1/9,000th the size of NVIDIA.