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Feb 24 - NVIDIA (NVDA, Financial) is set to report its fiscal fourth?quarter earnings on February 26, and expectations remain high despite underlying caution. Analysts forecast a robust 72.1% revenue growth, potentially reaching $38.0 billion, with gross margin at 73.5% and EPS rising by 63.5%or $0.84 per share. However, investors have grown accustomed to NVIDIA consistently beating guidance by roughly $2 billion each quarter, only to then raise its outlook by a similar margin.
In the last quarter, NVIDIA guided their revenue at $16 billion and reported $18.12 billion; then, they increased Q1 2024 guidance to a midpoint of $20 billion. Based on this predictable pattern, we see the current quarter will bring to market about $40 billion in revenue and guidance in the $42.5 region. In fact, some of the analysts have pegged that the revenue estimate for the April quarter would be somewhere around $41.751 billion. In order to truly surprise and beat the typical hedge unwinding in post-earnings, NVIDIA will require revenue to top $40 billion and guidance in excess of $43 billion.
This article first appeared on GuruFocus.