AI stalwart Nvidia Corp. (NASDAQ:NVDA) set a high bar for itself when it reported breathtaking results for its June quarter. The Santa Clara, California-based company now has the tall task of outperforming itself when it delivers its third-quarter report after the market closes on Tuesday.
What Wall Street Is Bracing For: Analysts, on average, expect Nvidia to report earnings per share of $3.36 on revenue of $16.12 billion, according to Benzinga Pro data. The Street forecasts suggest the company’s earnings per share will likely grow about 480% year-over-year and 24.44% sequentially. The consensus revenue estimate factors in year-over-year and quarter-over-quarter growth of 172% and 22.6%, respectively.
Here’s how the company fared in the preceding quarter and the year-ago quarter:
Q2’24 Y-o-Y Growth Q-o-Q Growth Q3’23 Y-o-Y Growth Q-o-Q Growth EPS (non-GAAP) $2.70 +429% +148% 58 cents (-50%) +14% Revenue $13.51B +101% +88% $5.93B (-17%) (-12%)
When Nvidia reported its June quarter results in late August, it guided third-quarter revenue to $16 billion, plus or minus 2%.
The company guided non-GAAP gross margin to 72.5%, plus or minus 50 basis points. This would mean an improvement from the second quarter’s 71.2% and the year-ago quarter’s 56.1%. Nvidia’s CFO, Colette Kress, attributed the second-quarter margin improvement to higher data center growth.
Raymond James analyst Srini Pajjuri said he expects another strong quarter from Nvidia, with a likely 5%-10% revenue beat.
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