Earnings preview for 11/18

Market Monster
5 min readNov 18, 2020

1. NVIDIA Corp Q3 2021 earnings preview

$NVIDIA Corp(NVDA.US)$ is scheduled to announce its Q3 2021 earnings result on Wednesday, November 18 after the market closes.

NVIDIA Corp is an American multinational technology company incorporated in Delaware and based in Santa Clara, California.

  • According to Bloomberg, analysts are forecasting earnings per share of $2.58 (44.7% YoY), on revenue of $4.42 billion (46.6% YoY).
  • In the past 2 years, NVIDIA Corp has beaten EPS estimates 88% of the time and has beaten revenue estimates 88% of the time.
Source: Bloomberg
  • 33 of 41 analysts have Buy ratings on NVIDIA Corp, while 5 analysts have a Hold or the equivalent rating. 3 analyst rates NVIDIA Corp as a sell. The average analyst price target is $567.83 implying a 5.8% upside.

Amid optimism for Nvidia’s long-term trajectory and the pending deal for Arm, its next few quarters may be strong yet slower than the 50% growth of 2Q. Its Data Center group may see 45–153% gains in fiscal 3Q21–1Q22, slower than the 167% in 2Q. This may be driven by a shorter-than-expected digestion period for public-cloud inventory, and is coupled with expected Gaming sales growth of 30–40% in the next three quarters. Total sales could near $4.5 billion in its 3Q, with potential for $4.6 billion in 4Q. Slightly lower gross margin may ding EPS, which is on track for $9.20 in fiscal 2021 vs. consensus of $9.10.

Our scenario sees $4.5 billion in 3Q sales with EPS of $2.58, and $4.6 billion in 4Q sales with EPS of $2.63, slightly above consensus for each. A 51x forward P/E is about 55% higher than its 33x five-year average.

-Anand Srinivasan, Bloomberg analyst

  • NVIDIA Corp will hold the conference call at 5:00 PM EDT Wednesday, November 18.

2. Bilibili Q3 2020 earnings preview

$Bilibili(BILI.US)$ is scheduled to announce its Q3 2020 earnings result on Wednesday, November 18 after the market closes.

Bilibili is a Chinese video-sharing website based in Shanghai, themed around animation, comics, and games (ACG), where users can submit, view, and add overlaid commentary on videos.

  • According to Bloomberg, analysts are forecasting earnings per share of -$2.45, on revenue of $3.06 billion (64.8% YoY).
  • In the past 2 years, Bilibili has beaten EPS estimates 63% of the time and has beaten revenue estimates 100% of the time.
Source: Bloomberg
  • 32 of 34 analysts have Buy ratings on Bilibili, while 2 analysts have a Hold or the equivalent rating. No analyst rates Bilibili as a sell. The average analyst price target is $56.67 implying a 13.2% upside.

Bilibili’s sales may have continued to benefit from the company’s efforts to broaden its content ecosystem and attract more users. Persistent strides toward increasing its ranks of monthly active users may have benefited from the release of two popular original series, Rap for Youth and Run for Young. Consensus expects sales to have jumped 65% in 3Q, while losses may have increased on higher costs associated with marketing, content and revenue-sharing fees.

Bilibili is expected to announce 3Q results on Nov. 18 after the U.S. markets close.

-Vey-Sern Ling and Tiffany Tam, Bloomberg analyst

  • Bilibili will hold the conference call at 8:00 AM EDT Wednesday, November 18.

3. Target Corp Q3 2021 earnings preview

$Target Corp(TGT.US)$ is scheduled to announce its Q3 2021 earnings result premarket on Wednesday, November 18.

Target Corp is an American retail corporation. It is the 8th-largest retailer in the United States.

  • According to Bloomberg, analysts are forecasting earnings per share of $1.60 (17.7% YoY), on revenue of $20.72 billion (12.5% YoY).
  • In the past 2 years, Target Corp has beaten EPS estimates 88% of the time and has beaten revenue estimates 100% of the time.
Source: Bloomberg
  • 20 of 30 analysts have Buy ratings on Target Corp, while 8 analysts have a Hold or the equivalent rating. Only 2 analyst rates Target Corp as a sell. The average analyst price target is $167.12 implying a 2.5% upside.

Target’s same-store sales may rise 11.4% in 3Q, based on Bloomberg consensus, as traffic to stores improved on the easing of social distancing and a desire to get out of the house as well as strong demand for services such as curbside pickup. The company benefits from shoppers aiming to consolidate trips. Gross margin could contract to 29.3% in 3Q, pressured by higher wages, safety protocols, fulfillment costs associated with stronger digital orders and a shift in sales to lower-margin food and essentials.

Uncertainty around school openings may have dampened apparel and other education item sales in 3Q compared with last year, though may show a sequential improvement over 1H. Inventory levels headed into the holiday season, which is extended this year, will be of interest.

-Jennifer Bartashus, Bloomberg analyst

  • Target Corp will hold the conference call at 8:00 AM EDT Wednesday, November 11.
Source: Bloomberg

--

--