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

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

Nvidia beat analysts’ revenue expectations last quarter, reporting revenues of $57.01 billion, up 62.5% year on year. It was a strong quarter for the company, with revenue guidance for next quarter beating analysts’ expectations 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 for active Edge members.

This quarter, the market is expecting Nvidia’s revenue to grow 68.3% year on year, slowing from the 77.9% increase it recorded in the same quarter last year.

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.

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. Qorvo delivered year-on-year revenue growth of 8.4%, meeting analysts’ expectations, and AMD reported revenues up 34.1%, topping estimates by 6%. Qorvo traded down 6.8% following the results while AMD was also down 17.3%.

Read our full analysis of Qorvo’s results here and AMD’s results here.

There has been positive sentiment among investors in the processors and graphics chips segment, with share prices up 8.2% on average over the last month. Nvidia is up 2.9% during the same time and is heading into earnings with an average analyst price target of $253.82 (compared to the current share price of $191.98).

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