Yesterday's Top Earnings - Why NVIDIA Corporation And Macy's Inc Stocks Tumbled

NVIDIA reports a massive earnings beat. Macy's stock tumbles on unconvincing guidance.

Yesterday was another busy earnings day with some highly popular names reporting their quarterly earnings. Almost all earnings were overshadowed by the broader markets registering their worst day since May due to rising tension with North Korea. Especially, the tech sector was badly hit and some of the stocks were down even after reporting strong earnings. So, yesterday's top 3 earnings were NVIDIA (NASDAQ:NVDA), Snap Inc (NYSE:SNAP) and Macy's (NYSE:M). Some of the other companies that reported earnings include the likes of BLUE APRON HLDG (NYSE:APRN) and Nordstrom (NYSE:JWN). Here's a quick look at the key earnings highlights of the above big names.

NVIDIA Corporation (NASDAQ:NVDA) delivers yet another blowout earnings but NVDA stock slides down.

One of the market's high-flying stocks, NVIDIA is down more than 6% in the after hours after reporting another solid earnings yesterday, after the market close. NVDA had stock had already lost more than 4% ahead of the Q2 earnings on account of overall market weakness and some profit booking. The GPU maker reported an adjusted earnings per share of $1.01 against analyst estimates of $0.70, delivering a massive 31 cents beat. The revenue came in at $2.23 billion for the second quarter. The Street was expecting a revenue of $1.96 billion. As we had mentioned in our earnings preview, the interest would be more on Datacenter and Automotive business progress than the headline numbers. The data center segment revenue soared 175% in Q2 from the same quarter a year ago, but it grew only 2% on a sequential basis to $416 million.

The modest sequential growth in data center segment did not please certain investors as this segment revenue was below their own estimates. The company also announced many partnerships for its automotive offerings. The management said that "A growing number of car and robot-taxi companies are choosing our DRIVE PX self-driving computing platform." Nvidia's gaming revenue -- the company's core business -- was up 52 percent year over year, and it beat analysts' estimates. The top management also gave credit to the Cryptocurrency boom for its better than expected performance and were very optimistic about its future prospects of its Cryptocurrency mining GPUs.  In terms of guidance, the company stated it expects to generate $2.35 billion in revenue, plus or minus 2 percent, in the third quarter of its 2018 fiscal year, which was much above the analyst estimates of $2.13 billion.

Macy's Inc (NYSE:M) beats expectations but stock slides sharply.

Department store chain Macy's reported second-quarter results before the market open on Thursday, and delivered earnings beat. However, shares of the company tumbled more than 10%, as the guidance for the full year was not enough to offset negative investor sentiment around the industry. Macy's reported adjusted earnings per share of $0.48, beating analysts' estimate of $0.46, while reporting revenue of $5.55 billion, which beat the consensus estimate of $5.52 billion narrowly. However, Macy's own guidance for the full year didn't go down very well with investors. The company maintained its full-year guidance, stating adjusted earnings per diluted share would come in at $2.90 to $3.15, excluding real estate gains. This was lower than the Street's consensus estimate of $3.29 per share for the year. In the earnings release, the company further stated that it "expects comparable sales on an owned basis to decline between 2.2 percent and 3.3 percent, with comparable sales on an owned plus licensed basis to decline between 2.0 percent and 3.0 percent."

The story for another department store chain Nordstrom was quite opposite, shares of the company rose higher after market close which reported second-quarter earnings after market close on Thursday. Just like Macy's, the company beat earnings estimates and sales expectations. Nordstrom, reported adjusted earnings per share of 65 cents a share, topping the consensus estimate of 64 cents, while revenue of $3.79 billion, surpassed expectations of $3.75 billion. JWN stock is up by 2.65% in the after hours.

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Sreekanth Anasa Sreekanth Anasa   on Amigobulls :

Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice.

Buying and selling of securities carries the risk of monetary losses.Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions.

Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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