NVIDIA Posts Q4 Earnings This Thursday. Will The Stock Be As Promising As It Usually Is?
NVIDIA Corporation (NASDAQ:NVDA) is set to report on its earnings this coming Thursday, February 9, 2017, after market hours. The processing unit titan was included in the roster of stocks with the strongest performances for the fiscal year 2016, hitting a record high of 119.93 on December 28, 2016.
The stock is known to be prone to significant movements after releasing its earnings report. Stock history illustrates how NVIDIA shares can easily gap up if solid numbers are presented. On the other hand, if numbers do not meet consensus, shares can also gap down easily.
The stock’s last settlement was on Friday session at 114.38, down 0.88 percent from Thursday’s close at 115.39. NVIDIA’s 14-day RSI currently rests at 64.52 which is nearing the overbought level but the onset of a retreating movement can be seen in the chart below.
NVIDIA’s current 50-day Average Daily Volume is at 17,561,939 with its 52-week high sitting at $119.93 and its 52-week low at $24.75. As of the moment it has a market cap of $ 61,650,820,000 with a price-to-earnings ratio of 59.88 and earnings per share of $1.91. Its dividend yield currently sits at 0.49 percent.
NVIDIA Corporation is projected to report earnings of $0.84 per share on $2.11 billion revenue.
The past fiscal year saw NVIDIA’s shares skyrocket to about 300 percent where it opened fiscal year 2016 at 32.29 and finished off at 106.74. This puts the GPU manufacturer’s monetary outcome will be put under the microscope of both analysts and market spectators.
The announcement of its fourth-quarter income will determine if NVIDIA is well worth of its rich valuation jump.
The artificial intelligence company’s automotive and gaming division surged to an impressive 63 percent and 61 percent, respectively, when it comes to generated growth for the fiscal third quarter. Market analysts’ consensus see the stock to continue have spilled its growth over in the fourth quarter.
In the general buzz that NVIDIA’s pursuits in the field of artificial intelligence and autonomous vehicles are generating, its gaming revenue still holds the largest operating segment and has been the key booster of the company’s performance in the recent quarters, so continuous strong earnings from this division is a must at this point.
Incorporated on February 24, 1998, NVIDIA Corporation is much of a frontrunner when it comes to visual computing, operating through segments which includes GPU and Tegra Processor.
As fiscal 2017 unfold, NVIDIA’s gaming revenue is 35 percent higher at $2.7 billion. Boosting development in its largest segment by the constant improvements with its new Pascal GPUs which are currently driving PC gamers for an upgrade cycle, NVIDIA still needs to ensure that enough number of PC games will be out on the market for Q4 as the expensiveness of high-end graphics cards can discourage gamers to upgrade.
As opposed to the plausible challenges that the gaming sector may face in the near term, the autonomous vehicle industry is a far wider playground for the chip-providing giant as the automotive segment continues to grow and become a promising industry.
The recent 2017 Consumer Electronics Show saw NVIDIA making public its partnership with Audi to create a self-driving car by 2020. NVIDIA should be expected to get bombarded with questions from the market as to the insinuations this announcement will have on the company in the near and long run.