Can Earnings Set NVIDIA Corporation (NASDAQ:NVDA) Stock On A Post Earnings Rally?
Jensen Huang led GPU maker NVIDIA Corporation (NASDAQ:NVDA) has been one of the hottest stocks on the market this year with nearly 100% gains in the year-to-date period. However, NVIDIA stock is losing steam ahead of its Q3 2018 earnings, which the Santa Clara, California-based company is scheduled to report today after the closing bell. NVDA stock has rallied hard going into earnings only close in the red yesterday. The question now is, whether the latest quarter earnings would set NVIDIA stock for a big post-earnings rally?
Coming to analyst estimates, The Wall Street consensus estimates for the semiconductor company's fiscal third quarter are a non-GAAP EPS of 94 cents per share on revenue of $2.36 billion. The analyst estimates imply a healthy 13.25% YoY EPS growth, but a drastic drop in earnings growth from the triple-digit YoY growth in the previous three quarters. On the top line front, revenues are expected to grow 18% YoY. The GPU giant has a strong history of crushing earnings estimates of late. However, that has not resulted in an uptick in stock price after earnings in some cases. Given the recent run-up in NVIDIA stock, are we in for something similar this time as well. Having said all this, the majority of the investor community could be having a question. Can earnings propel NVDA stock to new all-time highs? For a detailed preview of the NVIDIA stock's Q3 earnings and more insights about how to play NVDA stock ahead of earnings, please go through our NVIDIA earnings preview.
Can Earnings Help Walt Disney Co (NYSE:DIS) Stock Resume Its Uptrend?
The second major earning for the day is media and entertainment conglomerate Walt Disney Co (NYSE:DIS). Disney is also set to report its fiscal fourth-quarter earnings today after the market close. Shares of the Bob Iger led entertainment giant have not yet recovered from the sell off post Q3 earnings in August. Disney shares have come to life ahead of earnings due to the reports of the Twenty First Century Fox (NASDAQ:FOX) deal going around. Though the deal has raised some anti-trust concerns, something official is yet to come out in public domain about the deal. DIS stock has been in a continuous downtrend for the majority of the last six months with few spells of upside. Long-term investors would be hoping that the latest earnings could help DIS stock resume its uptrend.
First, let's take a look at the analyst estimates for the House of Mouse's Q4 earnings today. The media giant has a poor track record when it comes to beating analyst estimates. Though Walt Disney Co has delivered an earnings beat in 6 out of the last 8 quarters, it has missed revenue estimates 6 out of the previous 8 quarters, with a consecutive miss for last four quarters. On the top line front, Wall Street expects Disney to report revenues of $13.27 billion, slightly higher than what the company had reported last year. Analysts expect the House of Mouse to report an EPS of $1.15 per share, while the company had reported EPS of $1.1 in the fourth quarter last year. Earnings estimates have been trending down over the last three months but it has received a minor uptick ahead of earnings.
Now, with Disney stock facing resistance at its 100-day simple moving average, Can Q4 earnings offer the lifeline to stem the rot in DIS stock? For those interested and looking for answers to similar questions, here's a detailed look at what to expect from Walt Disney Co earnings today.
Macy's Inc (NYSE:M) Earnings: Light At the End Of Tunnel?
[Update: Macy's delivered an earnings beat in its third-quarter earnings release but missed the revenue estimates. The department store chain reported non-GAAP EPS of 23 cents, beating analysts estimates by 26 cents. On the top line front, the retailer reported revenues of $5.28B, a 6.1% YoY decline, and $30 million lower than what analysts were expecting. Macy’s operating income for the third quarter of 2017 came in at $121 million compared to $107 million for the third quarter of 2016. The company's same-store sales fell 3.6%, compared to an expected decline of 2.6%. The retail chain reaffirmed its previously provided guidance for full-year 2017 which suggests total sales to be down between 3.2% and 4.3% in fiscal 2017 and adjusted earnings per diluted share to be between $3.38 and $3.63 in 2017, excluding the impact of the anticipated settlement charges, restructuring and other costs and net premiums and fees associated with debt repurchases.]
Retailer Macy's Inc (NYSE:M) is the third major earnings to report today. The retail company though is set to report earnings before the market opens. With Macy's stock trading near its 7 years low, expectations rather meek and but there is more hope for the company's future quarters, ahead of its fiscal third-quarter earnings. Macy's has been one of the victims of the Amazon (NASDAQ:AMZN) onslaught. M stock is in doldrums down more than 50% in the year-to-date. Investors are waiting for a turnaround with the hope of Macy's restructuring efforts to yield results. The brick and mortar retail sector stocks have had a terrible time of late and there is little to be excited about today's Macy's earnings.
Amid massive restructuring efforts, Macy's earnings and revenues have declined over time. First, we shall have a look at the Street estimates. The average analyst EPS estimate for Macy's in Q3 is 19 cents per share, 3 cents higher than last year same quarter EPS number. The retail store chain is expected to deliver a revenue of $5.31 billion which translates to a YoY decline of 5.5%. Macy's has a mixed record of beating earnings estimates but the earnings whisper number of 18 cents per share suggest no end to the stock's woes with a miss on the cards. The negative sentiment around Macy's could only rise given an earnings miss with M stock already one of the top shorted stocks on NYSE. Short interest in Macy's is very high at 17.1% as a percentage of float and days to cover at 5 days. The other main things to watch out for in earnings today are, one, the progress of its restructuring efforts with respect to its real estate deals. Also, the guidance will be crucial as investors would expect it to come out with better outlook given the holiday season ahead. With declining earnings and revenues coupled with the massive erosion of market capitalization, some are skeptical that there could be cut on the dividend. To sum up, Macy's has lot to prove in its latest quarter earnings.
The other major earnings today is of another retail firm Nordstrom (NYSE:JWN), which will report its third-quarter earnings after the market close. Nordstrom is expected to report a non-GAAP earnings per share of 64 cents on revenue of $3.59 billion, translating to 24% YoY EPS decline and a top line growth of meager 1.4% from last year same quarter.
Looking for fundamentally better tech stocks? Check out Amigobulls' top stock picks from the tech sector, which have beaten the NASDAQ by over 167%. Interested in automotive stocks? Then, we also have our top picks from the auto sector, which have beaten the S&P 500 by a massive 274%. If you're a trader though, you should check out our daily trading ideas section for daily, free updates on the latest crossovers and other popular technical signals.