Nvidia Stock Set for Earnings Showdown
Nvidia's stock has been trading steadily ahead of its earnings release this week. Despite being down 4.7% from its recent peak, the stock is still up 13% from a low in July.
The company will report its Q2 earnings on August 26 after market close. Analysts expect revenue to be nearly $10 billion higher than last quarter's $81.62 billion, with an estimated average EPS of $2.09, representing a growth rate of 11.77% over the previous quarter.
This implies a forward P/E ratio of over 23x, which is lower than its historical average, according to Seeking Alpha data. Despite this, analysts have even higher price targets, with an average of $304.12 on Yahoo! Finance and $304.32 on Barchart's mean survey.
A key metric will be the company's free cash flow (FCF) margin performance, which is projected to be 53.3% for this fiscal year. If it is lower than expected, NVDA could take a hit.