Earings expectations for May 22nd
Today we will see how Nvidia has performed in the past quarter and the expectations are high. There are however three other companies I will keep a slight eye on to see how they do. Let’s dive into what I will be looking for, and what I hope for!
Starting off with the important one
Nvidia is expected to release earnings after the market closes, and as the main player in the AI trade, it is of huge importance for the markets. I do believe that the overall hype has somewhat slowed down, which means that shocks in the market may be less than it was one, or two quarters ago. But as much as I want to believe so, we do have to recognise the fact that Nvidia now has a $2.4 trillion market cap, that’s big enough to push markets around a bit. Analysts expect the company to report $5.60 of EPS on $24.593 billion of revenues, but you can expect a big sell-off of this number is only met, and not beaten significantly.
This quarter will be the last with the extreme growth rates if analysts projections are somewhat correct, so when we compare this quarter to the same periode last year, we see revenues in Q1’23 of $6.53 billion, and EPS of $1.09. That’s quite a difference to what is expected today. Guidance will also be very important as this will determine which way the ship is going. But again, if this company doens’t beat expectations by large margins, analysts will be dissapointed.
Target
Target is also expected to release earnings and I’m very curious to see how the turn-around is going. Especially as I saw an article a few days ago where the company said to have decreased about 5000 products in price in order to lure consumers into the stores. That will also be of focus here, the consumer. We know from Walmart that consumers are going down the ladder in order to buy cheaper goods where possible, so hearing Targets’ commentary on this will be interesting.
Analysts expect $2.06 in EPS, on revenues of $24.518 billion. This compares to $2.05 of EPS, and $25.32 billion of revenues in the same periode last year. This means that analysts are expecting the business to go down YoY.
Snowflake
Snowflake is mostly interesting as they were said to be beating Palantir before the last year happened. Last quarter also shattered some dreams as the CEO stepped down after getting paid extreme amounts for taking the company public, after which lawsuits started coming in about Snowflake doing everything possible to make growth look better than it actually was for the IPO, such as giving steep discounts.
Analysts are expecting Snowflake to report EPS of $0.18 on revenues of $787.4 million. This compares to last years numbers of $0.15 EPS on $613.17 million.
The Beauty Business That Grows Like Nothing Else
ELF Beauty is expected to report earnings after the market close. ELF is known for having extreme growth to investors, which comes from the fact that they try to premium-ish cosmetics for a non-premium price. The stock has fallen significant recently, as Ulta Beaty said they saw a difficult consumer. Investors will be looking for the outlook in a difficult market and hope to see sustained growth at the rate they have been. Analysts are expecting ELF to report EPS of $0.35 on revenues of $293.21 million. This compared to $0.42 of EPS on revenues of 187.36.
