Nvidia Inc. is scheduled to report earnings after Wednesday’s close. The stock hit a record high near $481.87/share on Tuesday and closed at $456.68/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:
Earnings Preview
The company is expected to report a gain of $2.18/share on $11.09 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.13/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
Thanks to the artificial intelligence boom, the company’s earnings are expected to grow by 116% in 2024 compared to 2023 and then grow by another 39% in 2025 compared to 2024. The company is expected to earn $10.04/share in 2025, which is substantially bigger than $1.45/share it earned in 2020. That type of explosive growth in a 5-year period is exactly what growth investors like to see.
A Closer Look At The Technicals
Technically, the stock just hit a fresh all-time high. The stock had a big decline in 2022, alongside the Nasdaq Composite, and other tech stocks. In October 2022, the stock bottomed, alongside the market, and had a big rally that took it all the way back to a fresh all-time high on Tuesday. The bulls want to see the stock gap up after reporting earnings and the bears want to see it gap down. It will be interesting to see how the stock reacts because it vaulted higher last quarter but this quarter many other AI related stocks fell after reporting earnings. It’s never a dull moment on Wall Street.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclaimer: The stock has been featured in my FindLeadingStocks.com report.
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