Technology

What Analysts Are Saying About NVIDIA After Earnings

Chris Lange

Published: February 11, 2017 10:05 am

Last Updated: January 12, 2020 2:55 pm

NVIDIA Corp. (NASDAQ: NVDA) reported fiscal fourth-quarter financial results after the markets closed on Thursday. With this earnings report NVIDIA is claiming to be on the cutting edge and ready to make a breakthrough with artificial intelligence. Although the results were positive, it was not necessarily a blowout quarter, which is why investors have sent shares lower for now at least. But analysts have a very positive outlook on the stock.

24/7 Wall St. has included some of the key highlights from the earnings report, as well as what the first round of analysts have said after the report.

The company posted $1.13 in non-GAAP earnings share (EPS) and $2.17 billion in revenue. Thomson Reuters had consensus estimates of $0.83 in EPS and revenue of $2.11 billion. In the same period of last year NVIDIA posted EPS of $0.52 and $1.4 billion in revenue.

In terms of the outlook for the fiscal first quarter, the company expects to see $190 billion in revenue, with a gross margin of 59.7%. The consensus estimates call for $0.64 in EPS and $1.88 billion in revenue for the quarter.

On the books, NVIDIA’s cash, cash equivalents and marketable securities totaled $6.80 billion at the end of the quarter, up from $5.04 billion at the end of the same period last year.

Jen-Hsun Huang, founder and CEO of NVIDIA, commented:

Deep learning on NVIDIA GPUs, a breakthrough approach to AI, is helping to tackle challenges such as self-driving cars, early cancer detection and weather prediction. We can now see that ‎GPU-based deep learning will revolutionize major industries, from consumer internet and transportation to health care and manufacturing. The era of AI is upon us.

A few analysts weighed in on NVIDIA after earnings:

• Canaccord Genuity has a Buy rating with a $130 price target.
• RBC has an Outperform rating and raised its target to $130 from $124.
• Jefferies has a Buy rating and raised its price target to $140.
• Instinet raised its price target to $100.
• Mizuho has a Buy rating and raised its price target to $130 from $115.
• B. Riley reiterated a Buy rating with a $135 price target.

Shares of NVIDIA ended the week at $113.62, with a consensus analyst price target of $103.50 and a 52-week trading range of $24.75 to $120.92.