Nvidia (NVDA) Reports Next Week: Wall Street Expects Earnings Growth

Nvidia (NVDA) is expected to report a 42.6% year-over-year increase in earnings to $0.87 per share on a 64% revenue increase to $42.71 billion for the quarter ended April 2025. However, the consensus EPS estimate has been revised slightly lower in the last 30 days, and the company's Earnings ESP is -5.24%, making it difficult to predict an earnings beat despite a history of surpassing estimates in the last four quarters; investors should consider other factors beyond the headline numbers.

Analysis

Nvidia is anticipated to announce substantial year-over-year growth in its upcoming earnings report for the quarter ended April 2025, with current consensus estimates pointing to a 42.6% increase in earnings per share to $0.87 and a significant 64% rise in revenues to $42.71 billion. However, this optimistic growth outlook is tempered by recent analyst sentiment, as the consensus EPS estimate has seen a slight downward revision of 0.93% over the last 30 days. Furthermore, Nvidia's Zacks Earnings ESP (Expected Surprise Prediction) is currently -5.24%, coupled with a Zacks Rank of #3 (Hold), a combination that, according to Zacks' methodology, makes it challenging to conclusively predict an earnings beat. While Nvidia has a strong history of exceeding EPS expectations, achieving this for the past four consecutive quarters, including a 5.95% positive surprise in the most recent reported quarter, the current set of indicators suggests a degree of uncertainty. The market's reaction to the May 28th report will likely depend not only on whether Nvidia meets or exceeds these headline figures but critically on management's discussion of business conditions and the forward-looking outlook.

Key Decisions for Investors

• Investors should approach Nvidia's upcoming earnings release with a degree of caution, balancing the strong projected growth figures against the negative Earnings ESP and recent downward EPS estimate revisions.
• Particular attention should be paid to management's commentary and forward guidance during the earnings call, especially concerning demand in key segments like AI and data centers, as this will be pivotal for assessing future performance beyond the immediate quarter.
• Given Nvidia's history of stock volatility around earnings events and the mixed pre-report signals, investors might consider reviewing their risk exposure and be prepared for potential price swings, understanding that factors beyond the headline EPS and revenue numbers often influence post-earnings stock performance.