5 big earnings hits: Nvidia's bang-up Q2; retail's bottom-line beats

Here is your Pro Recap of the biggest earnings reports you may have missed this week and how analysts responded: numbers out of tech names Nvidia, Marvell, Snowflake, and Zoom, as well as retailers Ulta Beauty, Gap, and Nordstrom.

InvestingPro subscribers got this news in real-time. Never be left in the dust again.

Nvidia's blazing quarter

Nvidia (NASDAQ:NVDA) obliterated Wall Street expectations for Q2 and full-year revenue guidance as demand for its chips remains sky-high amid the race to adopt generative artificial intelligence.

Shares climbed as high as 6.6% to $502.66 in Thursday's regular session after the post-close Wednesday print - an all-time high for Nvidia - although the stock retreated to a marginal gain at $471.63 by the end of the day.

The chipmaker recorded earnings of $2.70 per share, $0.67 better than consensus, on revenue of $13.51 billion vs. the $11.13B average analyst estimate. Embedded in the sales number was a 171% surge in its high-margin data center business as businesses transition to accelerated computing and generative AI from general-purpose computing.

The chipmaker also unveiled an additional $25B stock buyback plan.

As AI demand ramps up, Nvidia's suite of AI-related products has become the dominant option for AI-minded startups and businesses. The chipmaker said it expects supply to rise each quarter through next year, and in particular expects Q3 sales of about $16B, give or take 2%, well above the $12B consensus.

That ebullient guidance, said Wedbush in a note to clients, "will be fuel in the engine to ignite a tech rally we see continuing into the rest of the year despite the recent pullback and Fed jitters."

Stifel upgraded Nvidia to Buy from Hold with a price target of $600 on the "exceptional" quarter, saying, "we underestimated the opportunity related to the potential shift of $1 trillion of installed data center infrastructure from general purpose compute to accelerated compute architectures."

Morgan Stanley and Goldman Sachs maintained their buy ratings on the stock, with the former calling Q2 "another exceptional quarter" and Goldman writing, "We expect Nvidia to maintain its status as the accelerated computing industry standard for the foreseeable future."

And a notable Nvidia bull at Rosenblatt hiked the price target to an eye-popping $1,100 per share, opining, "Nvidia’s epic print and guide two quarters in a row is simply unprecedented and just getting started."

Marvell Technology's dull print

Elsewhere in tech, investors were deflated when Marvell Technology (NASDAQ:MRVL) posted merely in-line guidance and a slightly better-than-expected fiscal Q2.

Shares were down some 5% in Friday's premarket following the post-bell Thursday print, extending on a nearly 7% slide in the prior regular session.

Q2 earnings came in at $0.33 per share, a penny better than consensus, and revenue of $1.34B - down 12% from a year earlier - was a hair above the $1.33B Street estimate. For fiscal Q3, Marvell anticipates earnings of $0.40 per share on $1.4B in revenue.

CEO Matt Murphy said the growth implied in those expectations "is being driven primarily by AI and cloud infrastructure."

Snowflake falls despite a big earnings beat

Cloud concern Snowflake (NYSE:SNOW), meanwhile, reported earnings of $0.22 per share after the bell Wednesday, more than double the average Street estimate, on far better-than-expected sales of $674 million - up 36% year-over-year.

The company also maintained full-year guidance.

BTIG said Snowflake's results were solid and that its "long-term story is compelling on multiple levels," but maintained its Neutral rating on the stock, saying it sees "a balanced risk/reward" at current levels.

Shares foundered Thursday, losing 5.2% to $147.67.

Zoom ahead on earnings; shares take a dip

Finally, after the bell Monday, video-chat purveyor Zoom (NASDAQ:ZM) said it earned $1.34 per share in its fiscal Q2, well ahead of the $1.06 average estimate, on better-than-expected sales of $1.14.

Fiscal Q3 EPS guidance of $1.07 to $1.09 was ahead of the $1.03 consensus, and sales are expected at an in-line $1.115B to $1.12B.

Needham & Company maintained its Hold rating on the stock, writing, "we are cautious on meaningful re-acceleration until product diversification improves."

Zoom shares were down more than 2% Tuesday.

Ulta, Gap, and Nordstrom deliver better-than-anticipated profits

Ulta Beauty (NASDAQ:ULTA) beat on its Q2 print and full-year guidance after the bell Thursday: EPS totaled $6.02 on $2.53B in sales, whereas analysts were looking for $5.83 per share on $2.5B, while comparable-store sales climbed 8% - a slowdown from 14.4% the prior year. And the full-year profit forecast comes to $25.10 to $25.60 per share on $11.05B to $11.15B, with comps expected to rise 4.5% to 5.5%.

Ulta shares were up 1.3% to $428.08 premarket Friday.

Also up in Friday's premarket were Gap (NYSE:GPS) shares, which were recently climbing 1.4% to $9.66 after the casual-clothing retailer said Q2 adjusted earnings totaled $0.34 per share, $0.25 better than consensus, on a slightly lower-than-expected top line of $3.55B. Comparable store sales were down 6% over its brands, including Gap, Banana Republic, Old Navy, and Athleta, and Q3 sales are seen down in the low double-digits range.

Finally, Nordstrom (NYSE:JWN) reiterated its full-year guidance Thursday and reported Q2 adjusted EPS of $0.81, crushing the $0.45 average Street target, on better-than-expected revenue of $3.77B. Still, sales suffered a 275-basis-point hit from its wind-down of Canadian operations, as well as a 12.9% fall in online sales due to elimination of store fulfillment for Nordstrom Rack digital orders in the prior year and the closing down of Trunk Club.

Nordstrom shares were ticking down fractionally to $16.75 in recent premarket trading Friday.

(Yasin Ebrahim, Davit Kirakosyan, Liz Moyer, and Senad Karaahmetovic contributed to this report.)

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services (UK) Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: