Nvidia (NVDA) Q4 Earnings Report Preview: What To Look For

Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be reporting earnings tomorrow after market hours. Here’s what investors should know.

Nvidia beat analysts’ revenue expectations by 5.3% last quarter, reporting revenues of $35.08 billion, up 93.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Is Nvidia a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Nvidia’s revenue to grow 73.5% year on year to $38.34 billion, slowing from the 265% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nvidia has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8.1% on average.

Looking at Nvidia’s peers in the processors and graphics chips segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Qualcomm delivered year-on-year revenue growth of 17.5%, beating analysts’ expectations by 6.7%, and Intel reported a revenue decline of 7.4%, topping estimates by 3.3%. Qualcomm traded down 3.8% following the results while Intel was also down 3.3%.

Read our full analysis of Qualcomm’s results here and Intel’s results here.

Investors in the processors and graphics chips segment have had steady hands going into earnings, with share prices flat over the last month. Nvidia is up 9.2% during the same time and is heading into earnings with an average analyst price target of $171.64 (compared to the current share price of $130.52).

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