What to Expect When Nvidia Reports After the Close

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Nvidia Corp. (NASDAQ: NVDA) is scheduled to release its fiscal first-quarter financial results after the markets close on Thursday. The consensus estimates are calling for $0.79 in earnings per share (EPS) and $2.2 billion in revenue. The same period from last year reportedly had $2.05 in EPS and $3.21 billion in revenue.

This past quarter, Nvidia announced that it would acquire Mellanox Technologies. Both boards of directors have approved the transaction, which is expected to close by the end of calendar year 2019, subject to regulatory approvals and other customary closing conditions.

Under the terms of the agreement, Nvidia will acquire all the issued and outstanding common shares of Mellanox for $125 per share in cash, representing a total enterprise value of approximately $6.9 billion.

Ultimately, this acquisition will unite two of the world’s leading companies in high-performance computing. Together, Nvidia’s computing platform and Mellanox’s interconnects power over 250 of the world’s Top 500 supercomputers and have as customers every major cloud service provider and computer maker.

With Mellanox, Nvidia will be able to optimize data-center-scale workloads across the entire computing, networking and storage stack to achieve higher performance, greater utilization and lower operating cost for customers.

Nvidia has outperformed the broad markets, with its stock up about 19.5% year to date. In the past 52 weeks, the stock is actually down 37.5%.

A few analysts weighed in on Nvidia ahead of the results:

  • Stifel has a Hold rating with a $145 price target.
  • RBC has an Outperform rating and a $200 price target.
  • Morgan Stanley has an Equal Weight rating with a $170 target.
  • Nomura has a Neutral rating with a $147 target price.
  • Piper Jaffray’s Overweight rating comes with a $200 target.
  • Deutsche Bank has a Hold rating with a $160 target price.

Shares of Nvidia were last seen at $160.19, in a 52-week range of $124.46 to $292.76. The consensus price target is $187.71.


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