What Analysts Are Saying About NVIDIA After Earnings
Although NVIDIA's fiscal fourth-quarter financial results were positive, it was not necessarily a blowout quarter, which is why investors have sent shares lower for now at least. But analysts have a very positive outlook.
[cnxvideo id=”625456″ placement=”ros”]NVIDIA Corp. (NASDAQ: NVDA) reported fiscal fourth-quarter financial results after the markets closed on Thursday. With this earnings report NVIDIA is claiming to be on the cutting edge and ready to make a breakthrough with artificial intelligence. Although the results were positive, it was not necessarily a blowout quarter, which is why investors have sent shares lower for now at least. But analysts have a very positive outlook on the stock.
24/7 Wall St. has included some of the key highlights from the earnings report, as well as what the first round of analysts have said after the report.
The company posted $1.13 in non-GAAP earnings share (EPS) and $2.17 billion in revenue. Thomson Reuters had consensus estimates of $0.83 in EPS and revenue of $2.11 billion. In the same period of last year NVIDIA posted EPS of $0.52 and $1.4 billion in revenue.
In terms of the outlook for the fiscal first quarter, the company expects to see $190 billion in revenue, with a gross margin of 59.7%. The consensus estimates call for $0.64 in EPS and $1.88 billion in revenue for the quarter.
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On the books, NVIDIA’s cash, cash equivalents and marketable securities totaled $6.80 billion at the end of the quarter, up from $5.04 billion at the end of the same period last year.
Jen-Hsun Huang, founder and CEO of NVIDIA, commented:
Deep learning on NVIDIA GPUs, a breakthrough approach to AI, is helping to tackle challenges such as self-driving cars, early cancer detection and weather prediction. We can now see that GPU-based deep learning will revolutionize major industries, from consumer internet and transportation to health care and manufacturing. The era of AI is upon us.
A few analysts weighed in on NVIDIA after earnings:
- Canaccord Genuity has a Buy rating with a $130 price target.
- RBC has an Outperform rating and raised its target to $130 from $124.
- Jefferies has a Buy rating and raised its price target to $140.
- Instinet raised its price target to $100.
- Mizuho has a Buy rating and raised its price target to $130 from $115.
- B. Riley reiterated a Buy rating with a $135 price target.
Shares of NVIDIA ended the week at $113.62, with a consensus analyst price target of $103.50 and a 52-week trading range of $24.75 to $120.92.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
