Jensen Huang, chief executive officer of Nvidia Corp.
David Paul Morris | Bloomberg | Getty Images
Chipmaker Nvidia will issue an earnings report for the first quarter of fiscal 2020 after the market close on Thursday.
Here are the numbers to watch:
- Earnings: Excluding certain items, 81 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $2.20 billion as expected by analysts, according to Refinitiv.
Based on analysts' estimates, Nvidia's revenue for the quarter ended April 28, fell for a second consecutive period — this time down 31.5% — as it works through excess inventory.
Kevin Cassidy of Stifel wrote in a report on Monday note that Nvidia likely cleared out channel inventories in the quarter for its graphics processing units for gaming. Revenue in Nvidia's gaming business segment will be down 14% in the full 2020 fiscal year, "due to a challenging beginning of the year and increased competition pressuring" prices, Cassidy wrote.
With respect to guidance, analysts surveyed by Refinitiv are looking for Nvidia to project revenue of $2.54 billion in the second quarter, which would imply a decline of nearly 19%.
Nvidia's stock is up 20% since the beginning of the year, but is still about 45% off its record high reached in October.
In March, Nvidia announced its intent to buy Israeli networking hardware company Mellanox for almost $7 billion to help boost its data center business.
Executives will discuss the results with analysts on a conference call at 5:30 p.m. Eastern time.
This is breaking news. Please check back for updates.
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