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The Zacks Analyst Blog Highlights NVIDIA, Salesforce and CrowdStrike

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For Immediate Release

Chicago, IL – August 29, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: NVIDIA (NVDA - Free Report) , Salesforce (CRM - Free Report) and CrowdStrike (CRWD - Free Report) .

Here are highlights from Wednesday’s Analyst Blog:

NVIDIA Beats and Raises in Q2; CRM, CRWD Beat on Earnings

Yesterday’s trading environment represented a pullback in valuations across the board in advance of the big Q2 earnings results after the close from NVIDIA. As we discussed in this space earlier, an inordinate amount of attention has been drawn to the $3 trillion market-cap stock that’s already up big year to date.

Thus, Wednesday’s pullback hit the tech-heavy Nasdaq harder than the other main indexes. The Dow lost -159 points, -0.39%, yesterday. The Nasdaq slipped -198 points, -1.12%. The S&P 500 and small-cap Russell 2000 were -0.60% and -0.47%, respectively, for the session.

The Week’s Big News: NVIDIA’s Q2 Earnings Report

The most important stock on the planet reported Q2 earnings after the closing bell Wednesday. NVIDIA, creator of the GPU and leading the A.I. play in Data Center build-out, posted earnings of 68 cents per share versus the 64 cents in the Zacks consensus. Revenues of $30 billion in the quarter outpaced the Zacks consensus of $28.4 billion, up +122% year over year.

It’s the seventh-straight earnings beat for CEO Jensen Huang’s firm. And next-quarter revenue guidance has been raised to $32.5 billion (plus or minus 1-2%), ahead of the $30.97 billion analysts had earlier configured. Its Data Center segment brought in $26.3 billion in the quarter, +16% from the previous quarter and +154% year over year.

Next-quarter’s Gross Margins are expected to grow +75%, or terrific anticipation for its Blackwell architecture B200 core processors. Gaming/AI grew +9% in the quarter, Professional Visualization was up +6% and Automotive & Robotics +5%. Yet for all this, shares were selling off -1.5% in the late market, booking some of the +150% profits year to date.

Other Q2 Reports This Afternoon

If we want to talk industry innovation, we can also discuss Salesforce, which put out Q2 results after the bell yesterday afternoon as well. Earnings of $2.56 per share came in well ahead of the $2.35 analysts were expecting, though quarterly revenues of $9.33 billion were a tad below the $9.35 billion estimate.

Next-quarter guidance was good, not stellar: earnings in a range between $2.42-2.44 per share puts it a couple cents above Zacks predictions. Revenues are now expected between $9.31-9.36, below the $9.41 per share consensus. Even with CFO Amy Weaver stepping down, shares are up +4.3% in late trading, adding to the +2% year-to-date gains.

Zacks Rank #5 (Strong Sell)-rated CrowdStrike, following a recent data breach that occurred back in July, posted solid wins on its top and bottom lines regardless: earnings of $1.04 per share were nicely ahead of expectations for 98 cents per share. Revenues, at $963.9 million, surpassed the expected $958.6 billion.

Due to a data breach during the quarter, CrowdStrike has adjusted next quarter’s earnings per share down to 80-81 cents, from the 97 cents per share previous expected. Revenues are now projected to reach between $3.89-3.90 billion. Non-GAAP subscription Gross Margins came in at +81% in the quarter.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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