Chipmaker Nvidia will announce earnings for the fourth quarter of its 2019 fiscal year after market close on Thursday. Executives will discuss the results with analysts on a conference call at 5:30 p.m. Eastern time.
Here are the key numbers:
- Earnings: 75 cents per share, excluding certain items, as expected by analysts, according to Refinitiv.
- Revenue: $2.20 billion as expected by analysts, according to Refinitiv.
The revenue estimate for the quarter, which ended on Jan. 27, implies a 24 percent decline from a year earlier for Nvidia, which disclosed excess inventory one quarter ago. On Jan. 28, Nvidia released updated fiscal fourth-quarter guidance indicating that gaming and data center revenue were below the company's expectations.
Analysts from Raymond James said sentiment from the supply chain turned more negative.
"Gaming sales naturally continue to be impacted by the significant inventory overhang," the analysts wrote in a Jan. 28 note. "That inventory reduction has been impacted by slower sell-through, particularly in China."
In the fiscal fourth quarter Nvidia announced the availability of the GeForce RTX 2060 graphics card for PC gaming.
With respect to guidance, analysts expect Nvidia to forecast $2.28 billion in revenue for the first quarter of its 2020 fiscal year, a 29 percent year-over-year decline.
Jim Kelleher, an analyst at Argus research, described Nvidia's situation as a "near-perfect story," because of higher inventory, the launch of an expensive product and "a one-time runoff in crypto-related inventory." Kelleher has a buy rating on Nvidia.
Nvidia shares are up 15 percent since the beginning of the year.
This is breaking news. Please check back for updates.
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