Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.Īhead of this earnings release, the estimate revisions trend for Nvidia was favorable. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.Įmpirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. While Nvidia has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Nvidia shares have added about 108.4% since the beginning of the year versus the S&P 500's gain of 4.9%. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

The company has topped consensus revenue estimates four times over the last four quarters. This compares to year-ago revenues of $2.58 billion.

Nvidia, which belongs to the Zacks Semiconductor - General industry, posted revenues of $3.87 billion for the quarter ended July 2020, surpassing the Zacks Consensus Estimate by 5.79%.

Nvda price to revenue