However, the model's predictive power is significant for positive ESP readings only.Ī positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. The consensus EPS estimate for the quarter has been revised 0.86% higher over the last 30 days to the current level. Revenues are expected to be $8.12 billion, up 43.4% from the year-ago quarter. This maker of graphics chips for gaming and artificial intelligence is expected to post quarterly earnings of $1.30 per share in its upcoming report, which represents a year-over-year change of +41.3%. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. On the other hand, if they miss, the stock may move lower. The earnings report, which is expected to be released on May 25, 2022, might help the stock move higher if these key numbers are better than expectations. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The market expects Nvidia (NVDA) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended April 2022.
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