What Analysts Are Saying After Nvidia's Earnings

Nvidia Corp. (NASDAQ: NVDA) blew away investors and analysts alike with its fiscal second-quarter financial results after markets closed Thursday, but it was a long time coming as shares were down 43% in the past year prior to this move. Analysts took this opportunity to readjust, and most were fairly positive.

24/7 Wall St. has included some brief highlights from the earnings report, as well as what analysts are saying after the fact.

The firm said that it had $1.24 in earnings per share (EPS) and $2.58 billion in revenue, compared with consensus estimates that had called for $1.14 in EPS and $2.54 billion in revenue. The same period of last year reportedly had EPS of $1.94 on revenue of $3.12 billion.

Looking ahead to the fiscal third quarter, the company expects to see revenues of $2.90 billion, give or take 2%, with a gross margin in the range of 62.0% to 62.5%. Consensus estimates call for $1.52 in EPS and $2.97 billion in revenue for the quarter.

Wedbush reiterated an Outperform rating with a $184 price target, implying upside of nearly 23% from the most recent closing price of $150.07. The firm noted that gaming sales grew substantially, coming in ahead of both its expectations and the Wall Street outlook, buoyed by strong Switch related revenues. Wedbush expects this trend to continue in the October quarter as Nvidia realizes a full quarter of benefit from the roll-out of its “Super” line. On the other hand, Wedbush noted concerns in its preview that data center growth was more muted than either it or the street expected.

Here’s what a few other analysts had to say following the report:

  • Craig Hallum reiterated a Hold rating and raised its price target to $170 from $165.
  • Morgan Stanley reiterated it at Equal Weight and raised its price target to $180 from $170.
  • BMO Capital Markets reiterated a Market Perform rating with a $145 price target.
  • Rosenblatt reiterated a Buy rating with a $180 price target.
  • Mizuho reiterated a Buy rating with a $185 price target.

Shares of Nvidia traded up about 8% on Friday to$160.42, in a 52-week range of $124.46 to $292.76. The consensus price target is $183.45.