Nvidia Positioned for Earnings Success in Upcoming Report
Are you on the lookout for a stock that may continue its earnings-surpassing trend? Nvidia (NVDA), part of the Zacks Semiconductor – General industry, appears to be a strong candidate.
Looking back at the past two reports, this graphics chip manufacturer focused on gaming and artificial intelligence has consistently exceeded earnings expectations. On average, Nvidia has surpassed estimates by 6.98% in both recent quarters.
Recent Earnings Performance
In its last reported quarter, Nvidia achieved earnings of $0.89 per share, outpacing the Zacks Consensus Estimate of $0.84 per share, resulting in a surprise of 5.95%. During the previous quarter, analysts expected the company to post earnings of $0.75 per share, but Nvidia delivered $0.81 per share, exceeding expectations by 8%.
Anticipated Earnings Changes
Building on this positive trend, there has been a notable adjustment in earnings estimates for Nvidia. The Zacks earnings ESP (Expected Surprise Prediction) currently stands positive, enhancing the likelihood of an earnings beat. This prediction is especially strong when you pair it with Nvidia’s solid Zacks Rank.
Research suggests that stocks exhibiting both a positive earnings ESP and a Zacks Rank of #3 (Hold) or better achieve a positive surprise nearly 70% of the time. To illustrate, if you consider 10 stocks with this profile, up to seven may potentially exceed the consensus estimate.
Understanding the Earnings ESP
The Zacks earnings ESP evaluates the Most Accurate Estimate against the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate reflects recent analyst revisions, which may incorporate the latest information, potentially offering a more accurate insight than earlier predictions.
Currently, Nvidia’s earnings ESP is +3.87%, indicating a bullish sentiment among analysts regarding its near-term earnings outlook. Coupling this positive metric with the stock’s Zacks Rank #3 suggests a favorable opportunity for investors. The company’s next earnings report is anticipated on May 28, 2025.
It’s crucial to bear in mind that a negative earnings ESP may diminish predictive accuracy. However, it does not predict an earnings miss. Many companies might outperform consensus EPS estimates, but this alone may not guarantee stock price increases. Conversely, some stocks may remain stable even after falling short of expectations.
Thus, checking a company’s earnings ESP before quarterly releases is vital for investors looking to improve their chances of success. Utilize our earnings ESP Filter to discover promising stocks before they report their earnings.
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NVIDIA Corporation (NVDA): Detailed Stock Analysis report
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
