Last Reported Results and Surprise History The $27.52 billion and $31.98 billion estimates for the current and next fiscal years indicate changes of +2.3% and +16.2%, respectively. In the case of Nvidia, the consensus sales estimate of $5.9 billion for the current quarter points to a year-over-year change of -16.9%. So, it's important to know a company's potential revenue growth. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Over the last 30 days, this estimate has changed -43.2%.ġ2-month consensus EPS estimate for NVDA _12MonthEPSChartUrl The Zacks Consensus Estimate has changed -56.4% over the last 30 days.įor the current fiscal year, the consensus earnings estimate of $3.51 points to a change of -21% from the prior year. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.įor the current quarter, Nvidia is expected to post earnings of $0.75 per share, indicating a change of -35.9% from the year-ago quarter. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. And if earnings estimates go up for a company, the fair value for its stock goes up. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Now the key question is: Where could the stock be headed in the near term? The Zacks Semiconductor - General industry, to which Nvidia belongs, has lost 10.4% over this period. Shares of this maker of graphics chips for gaming and artificial intelligence have returned -14.3% over the past month versus the Zacks S&P 500 composite's -2.3% change. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Nvidia (NVDA) has recently been on 's list of the most searched stocks.
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