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Markets Await NVIDIA Earnings

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Pre-market futures are down gently this Hump Day, now squarely in the shadow of NVIDIA’s (NVDA - Free Report) Q2 earnings report after today’s close. We may tend to think market participants are spending an inordinate amount of time on one stock, but if there had to be one in the year 2024, this would be it.

 

Expectations for NVIDIA’s Q2 Earnings

There are only a few companies on the planet with a market capitalization of more than $3 trillion, and none of these have gained nearly 3000% in share price over the past five years. NVIDIA has always been known as an innovator: it created the Graphics Processing Unit (GPU), or what you may think of as a video microchip. And they are now ubiquitous.

Over the past year and a half or so, the big trade has been in Artificial Intelligence (AI), and here NVIDIA has been a market leader, as well. Data Center development is key in the AI space, and this is where NVIDIA has gotten well ahead of most of its competition.

Thus, Growth at the company has earned an A from the Zacks Style metric, and Momentum gets an A, as well. However, Value for NVIDIA shares currently has an F. Yet the company expects +137% earnings per share growth in Q2 reported this afternoon, and +110% in quarterly revenues. The company currently rides a six-quarter positive earnings surprise streak, with a trailing four-quarter average beat of +18%.

Kohl’s Shares Up on Q2 Beat

This morning, department store operator Kohl’s (KSS - Free Report) outperformed expectations on both top and bottom lines in its Q2 report this morning. Earnings of 59 cents per share outpaces the 46 cents anticipated (and better than the 52 cents per share reported in the year-ago quarter) on $3.73 billion in sales, +1.85% above the Zacks consensus.

It also represents a nice bounceback from the -700% earnings per share miss in Kohl’s prior quarter. Yet year-over-year comps were down -5% in Q2, even with its Sephora component performing well in Kohl’s stores. But raised guidance has helped bumped shares up +4% in today’s pre-market; it had been trading down -30% year to date.

 

Another Big Beat and Raise for Abercrombie in Q2

Abercrombie & Fitch (ANF - Free Report) more than doubled its earnings year over year — coming in at $2.50 cents per share, well above the $2.14 in the Zacks consensus. Revenues of $1.13 billion easily surpassed the $1.09 billion, representing +21% growth from one year ago. And guidance has been raised at the Ohio-based retaler.

Yet shares are trading the news down -10% in today’s pre-market, on an “increasingly uncertain environment” for the Abercrombie brands, which include Hollister and Gilly Hicks. Also, the stock, after posting an average 210% earnings beat in its trailing four quarters, had been bid up nearly +90% year to date. So consider this sell-off a booking of profits.

 

Smucker’s Shares Down Following Mixed Fiscal Q1

America’s pantry stocker, J.M. Smucker Co. (SJM - Free Report) , posted a nearly +12% earnings per share surprise this morning in its fiscal Q1 report: $2.44 per share versus $2.18 in the Zacks consensus (and better than the $2.21 per share posted in the year-ago quarter). Revenues were slightly below estimates, however, with its $2.13 billion missing expectations by -0.42%. Thus, the shares are down another -3.5% in early trading, adding to the -4.5% the stock has brought in year to date.

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