No investment decision can be efficient without considering a stock's valuation. The company topped consensus revenue estimates each time over this period. The company beat consensus EPS estimates in each of the trailing four quarters. EPS of $1.36 for the same period compares with $0.92 a year ago.Ĭompared to the Zacks Consensus Estimate of $8.12 billion, the reported revenues represent a surprise of +2.09%. Nvidia reported revenues of $8.29 billion in the last reported quarter, representing a year-over-year change of +46.4%. Last Reported Results and Surprise History The $33.94 billion and $38.47 billion estimates for the current and next fiscal years indicate changes of +26.1% and +13.4%, respectively. In the case of Nvidia, the consensus sales estimate of $8.12 billion for the current quarter points to a year-over-year change of +24.8%. Therefore, knowing a company's potential revenue growth is crucial. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. This estimate has changed -3.6% over the last 30 days.ġ2-month consensus EPS estimate for NVDA _12MonthEPSChartUrlĮven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. The consensus earnings estimate of $5.47 for the current fiscal year indicates a year-over-year change of +23.2%. The Zacks Consensus Estimate has changed -9.3% over the last 30 days. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.įor the current quarter, Nvidia is expected to post earnings of $1.27 per share, indicating a change of +22.1% from the year-ago quarter. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. 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. Now the key question is: Where could the stock be headed in the near term?Īlthough media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. The Zacks Semiconductor - General industry, to which Nvidia belongs, has lost 8.1% over this period. Shares of this maker of graphics chips for gaming and artificial intelligence have returned -6% over the past month versus the Zacks S&P 500 composite's -5.7% 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.