Latest news with #earningsReport
Globe and Mail
a day ago
- Business
- Globe and Mail
‘Take a Deep Breath,' Says Top Investor About Nvidia Stock
Seasons change, presidents are elected, and markets rise and fall – but Nvidia Corporation (NASDAQ:NVDA) continues to surpass expectations. Once again, the undisputed data center champion delivered top- and bottom-line beats with its Q1 Fiscal 2026 earnings report. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Nvidia's revenues grew 69% year-over-year to reach $44.1 billion, nicely outpacing projections by a cool $810 million. The company's lucrative data center segment is a particular point of pride, and its revenues grew even faster by 73% year-over-year to $39 billion. While the overall numbers continue to impress, it was not all sunshine and rainbows. Revenue growth – while the envy of many – is slowing, and margins – while north of 60% – also declined. Of course, a fair amount of the shrinking margins can be blamed on a $4.5 billion charge related to H20 GPUs that the company was not allowed to ship to China. The big question, however, is how the share price will react going forward. NVDA has been up-and-down quite a bit in 2025 – and all told its share price is roughly even year-to-date. That being said, since hitting a low point in early April, NVDA has risen over 40%. While top investor Jonathan Weber applauds Nvidia's revenue growth, he is not so sure that now is the time to jump on board. 'With Nvidia trading at more than 30x forward earnings again, following huge gains over the last couple of weeks, it is not as attractive as it was during the spring selloff,' explains the 5-star investor, who is in the top 2% of TipRanks' stock pros. While Weber deems that revenue growth is excellent indeed, it is not exactly 'extraordinary' for a company that has delivered growth rates up to 270% in the recent past. Moreover, it represents a declining trend. 'Momentum is thus not on Nvidia's side, which can be explained by factors such as tough comparisons and the law of large numbers — no company can grow at an extremely high growth rate forever, not even Nvidia,' adds Weber. Acknowledging that NVDA has been quite 'volatile' this year, Weber still sees plenty of growth up ahead. Whether or not that justifies buying NVDA at present is another story, however. 'Overall, I do not think that NVDA is a bad investment right here at all, but I also do not believe that it's a must-own,' concludes Weber, who assigns NVDA a Hold (i.e. Neutral) rating. (To watch Jonathan Weber's track record, click here) Wall Street, on the other hand, is 'all in' on Nvidia. With 33 Buys, 4 Holds, and 1 Sell, NVDA enjoys a Strong Buy consensus rating. Its 12-month average price target of $165.29 has an upside north of 20%. (See NVDA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
Yahoo
4 days ago
- Business
- Yahoo
Semtech Corp (SMTC) Q1 2026 Earnings Call Highlights: Record Growth in Data Center Sales and ...
Net Sales: $251.1 million, up 22% year over year. Adjusted Gross Margin: 53.5%, up 30 basis points sequentially and 370 basis points year over year. Adjusted Operating Income: $47.6 million, with an adjusted operating margin of 19%, up 680 basis points year over year. Adjusted EBITDA: $55.4 million, up 68% year over year, with an adjusted EBITDA margin of 22.1%, up 600 basis points year over year. Adjusted Diluted Earnings Per Share: $0.38, up from $0.06 a year ago. Operating Cash Flow: $27.8 million. Free Cash Flow: $26.2 million. Net Debt: Decreased by $14.8 million to $396.2 million. Infrastructure Net Sales: $72.8 million, up 5% sequentially and 30% year over year. Data Center Net Sales: $51.6 million, up 3% sequentially and 143% year over year. High-End Consumer Net Sales: $35.4 million, flat sequentially and up 3% year over year. Industrial Net Sales: $142.8 million, down 3% sequentially and up 24% year over year. LoRa Enabled Solutions Net Sales: $38.9 million, up 5% sequentially and 81% year over year. IoT Systems Hardware Net Sales: $63.5 million, down 8% sequentially and up 31% year over year. Warning! GuruFocus has detected 9 Warning Signs with SMTC. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Semtech Corp (NASDAQ:SMTC) reported Q1 net sales of $251.1 million, exceeding the midpoint of their outlook and marking a 22% year-over-year increase. The company's adjusted gross margin improved to 53.5%, up 370 basis points year over year. Infrastructure net sales grew by 30% year over year, with data center sales reaching a record $51.6 million, up 143% year over year. Semtech's CopperEdge technology offers significant power savings and extended reach, positioning it as a strong solution for next-generation AI clusters. The company has made strides in portfolio optimization and strategic R&D investments, aiming to drive margin expansion and shareholder value. The IoT systems hardware business saw an 8% sequential decline in net sales, although it was still up 31% year over year. Gross margins in the cellular module business were down both quarter-on-quarter and year-on-year, partly due to a mix shift and a one-time inventory event. LoRa net sales are expected to decline slightly in the next quarter, despite strong year-over-year growth. The company faces macroeconomic uncertainties that may impact the timing of some portfolio optimization initiatives. There was a noted air pocket in demand for CopperEdge due to platform changes with an anchor customer, affecting short-term revenue. Q: Can you explain the decline in the cellular module business and the impact on gross margins? A: Hong Hou, President and CEO, explained that the decline was expected due to seasonality in the IoT system product. Despite this, the business is experiencing significant tailwinds from competitors being sanctioned and exits from the IoT cellular business. Mark Lin, CFO, added that the gross margin decline was due to a mix shift towards modules and a one-time inventory event affecting margins. Q: Could you provide more details on the progress and visibility around AI connectivity, specifically CopperEdge? A: Hong Hou stated that CopperEdge has been well-received, with over 20 customer engagements. The product offers advantages like low power consumption and low latency. They expect meaningful design wins and volume ramps by Q4 of this fiscal year. Q: What is the outlook for the LPO and optical business, particularly regarding TIAs and drivers? A: Hong Hou noted that Semtech's TIA is considered the industry gold standard, with design wins across module manufacturers. The LPO is expected to see deployments in the second half of the fiscal year, with the driver being fully compliant with MSA specifications, leading to additional revenue by Q4. Q: How do you see the core data center business trending over the next 6 to 12 months? A: Hong Hou expressed optimism about the FiberEdge product line, which continues to show growth. The company expects accelerated growth in the second half of the year, driven by strong booking activities and increased CapEx spending in the industry. Q: Can you elaborate on the expected performance of LoRa in the coming quarters? A: Mark Lin mentioned that LoRa's Q1 performance was strong, with expectations of a $30 million to $35 million quarterly run rate. The slight decline in Q2 is attributed to project-based spending and customer builds for product launches, but the overall business remains robust. Q: What are the expectations for AI connectivity, specifically CopperEdge, in the coming quarters? A: Hong Hou indicated that while demand from the anchor customer is lower, engagements with other customers are promising. They expect revenue from these engagements to start in Q4 and ramp up in the next fiscal year. Q: How is the company addressing macroeconomic uncertainties and tariff impacts? A: Hong Hou explained that while macroeconomic uncertainties may delay strategic initiatives, the company remains focused on improving business performance and creating shareholder value. Tariff impacts are being mitigated through operational coordination. Q: What is the outlook for the high-end consumer market, particularly regarding the SurgeSwitch product? A: Hong Hou highlighted that SurgeSwitch offers system-level protection and is being designed into multiple customer systems. It provides robust protection for Type-C connectors, which are increasingly used across various industries, offering noticeable ASP improvements. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
Synopsys to Report Q2 Earnings: What's in Store for the Stock?
Synopsys SNPS is scheduled to report second-quarter fiscal 2025 results on May 28, after market expects non-GAAP earnings per share between $3.37 and $3.42. The Zacks Consensus Estimate for fiscal second-quarter earnings is pinned at $3.39 per share, which indicates an increase of 13% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).The company anticipates revenues between $1.585 billion and $1.615 billion for the fiscal second quarter. The Zacks Consensus Estimate is pegged at $1.60 billion, which suggests an increase of 10.10% from the year-ago period's reported the trailing four quarters, SNPS' earnings surpassed the Zacks Consensus Estimate thrice while missing the same on one occasion, with an average surprise of 3.69%. Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote Synopsys' fiscal second-quarter performance is likely to have benefited from robust demand in the AI and high-performance computing end markets. Strong momentum around Synopsys' newly expanded hardware-assisted verification (HAV) portfolio is expected to have boosted top-line growth during the quarter to be reported. The launch of next-generation HAPS 200 prototyping systems and ZeBu 200 emulation systems, delivering up to 2x better performance compared to prior versions, has strengthened Synopsys' leadership in HAV. Major customers, including AMD, ARM, NVIDIA and SiFive, have begun deploying these technologies, are likely to have contributed positively in the to-be-reported company's advancement in agent AI is anticipated to have further supported second-quarter performance. By enabling engineers to task autonomous agents with executing complex workflows, Synopsys expects to unlock massive productivity gains across the industry. The continued adoption of across design implementation, verification, test, and analog tools is expected to have driven meaningful growth. Synopsys' IP development for the global foundry ecosystem is also expected to contribute positively to the to-be-reported quarter results. Silicon success for PCIe 4.05 IP on Samsung's SF8 process, targeting automotive, mobile, networking, and storage applications, as well as successful deployment of one-time programmable non-volatile memory IP on TSMC's N4, N5, N6, and N7 nodes, is likely to have supported demand, particularly in security and encryption-related tightening budgets among corporations due to ongoing macroeconomic challenges and unfavorable currency exchange rates are expected to have partially offset the positive impacts of the growth drivers. Our proven model does not conclusively predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that's not the case SNPS currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Dell Technologies DELL, Nutanix NTNX and Salesforce CRM are some stocks that have a favorable Technologies has an Earnings ESP of +1.46% and a Zacks Rank #3 at present. DELL shares have lost 2.7% year to date. DELL is set to report its first-quarter fiscal 2026 results on May 29. You can see the complete list of today's Zacks #1 Rank stocks has an Earnings ESP of +5.26% and a Zacks Rank #3 at present. NTNX shares have gained 30.3% year to date. NTNX is slated to report the third quarter of fiscal 2025 results on May has an Earnings ESP of +0.76% and a Zacks Rank #3 at present. CRM shares have plunged 18.3% year to date. CRM is slated to report its first-quarter fiscal 2026 results on May 28. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report Nutanix (NTNX) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
5 days ago
- Business
- Globe and Mail
Synopsys to Report Q2 Earnings: What's in Store for the Stock?
Synopsys SNPS is scheduled to report second-quarter fiscal 2025 results on May 28, after market close. Synopsys expects non-GAAP earnings per share between $3.37 and $3.42. The Zacks Consensus Estimate for fiscal second-quarter earnings is pinned at $3.39 per share, which indicates an increase of 13% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar). The company anticipates revenues between $1.585 billion and $1.615 billion for the fiscal second quarter. The Zacks Consensus Estimate is pegged at $1.60 billion, which suggests an increase of 10.10% from the year-ago period's reported figure. In the trailing four quarters, SNPS' earnings surpassed the Zacks Consensus Estimate thrice while missing the same on one occasion, with an average surprise of 3.69%. Synopsys, Inc. Price and EPS Surprise Synopsys, Inc. price-eps-surprise | Synopsys, Inc. Quote Factors Influencing Synopsys' Q2 Results Synopsys' fiscal second-quarter performance is likely to have benefited from robust demand in the AI and high-performance computing end markets. Strong momentum around Synopsys' newly expanded hardware-assisted verification (HAV) portfolio is expected to have boosted top-line growth during the quarter to be reported. The launch of next-generation HAPS 200 prototyping systems and ZeBu 200 emulation systems, delivering up to 2x better performance compared to prior versions, has strengthened Synopsys' leadership in HAV. Major customers, including AMD, ARM, NVIDIA and SiFive, have begun deploying these technologies, are likely to have contributed positively in the to-be-reported quarter. The company's advancement in agent AI is anticipated to have further supported second-quarter performance. By enabling engineers to task autonomous agents with executing complex workflows, Synopsys expects to unlock massive productivity gains across the industry. The continued adoption of across design implementation, verification, test, and analog tools is expected to have driven meaningful growth. Synopsys' IP development for the global foundry ecosystem is also expected to contribute positively to the to-be-reported quarter results. Silicon success for PCIe 4.05 IP on Samsung's SF8 process, targeting automotive, mobile, networking, and storage applications, as well as successful deployment of one-time programmable non-volatile memory IP on TSMC's N4, N5, N6, and N7 nodes, is likely to have supported demand, particularly in security and encryption-related solutions. However, tightening budgets among corporations due to ongoing macroeconomic challenges and unfavorable currency exchange rates are expected to have partially offset the positive impacts of the growth drivers. What Our Model Says About SNPS Our proven model does not conclusively predict an earnings beat for SNPS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that's not the case here. Though SNPS currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Stocks With Favorable Combination Dell Technologies DELL, Nutanix NTNX and Salesforce CRM are some stocks that have a favorable combination. Dell Technologies has an Earnings ESP of +1.46% and a Zacks Rank #3 at present. DELL shares have lost 2.7% year to date. DELL is set to report its first-quarter fiscal 2026 results on May 29. You can see the complete list of today's Zacks #1 Rank stocks here. Nutanix has an Earnings ESP of +5.26% and a Zacks Rank #3 at present. NTNX shares have gained 30.3% year to date. NTNX is slated to report the third quarter of fiscal 2025 results on May 28. Salesforce has an Earnings ESP of +0.76% and a Zacks Rank #3 at present. CRM shares have plunged 18.3% year to date. CRM is slated to report its first-quarter fiscal 2026 results on May 28. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce Inc. (CRM): Free Stock Analysis Report Dell Technologies Inc. (DELL): Free Stock Analysis Report Synopsys, Inc. (SNPS): Free Stock Analysis Report Nutanix (NTNX): Free Stock Analysis Report This article originally published on Zacks Investment Research (
Yahoo
7 days ago
- Business
- Yahoo
Why Copart Inc. (CPRT) Crashed On Friday
We recently published a list of . In this article, we are going to take a look at where Copart Inc. (NASDAQ:CPRT) stands against other Friday's worst-performing stocks. Shares of Copart Inc. declined for a fifth consecutive day on Friday, losing 11.52 percent to close at $53.67 apiece after missing analysts' earnings estimates and reporting a drop in vehicle sales in the first quarter of the year. In its financial statement, Copart Inc. (NASDAQ:CPRT) said earnings per share came in at 42 cents, just in line with analyst estimates. However, revenues settled at $1.21 billion, short of the $1.23 billion consensus, but marked a 7.5 percent growth from the $1.1 billion reported in the same period last year. Of the total revenues, Copart Inc. (NASDAQ:CPRT) saw a 2.1 percent dip in vehicle sales to $177 million versus $180.6 million year-on-year, while service revenues increased by 9.3 percent. A busy car auction being held at a leading car dealership, buyers and sellers engaging in active bidding. Attributable net income rose by 6.4 percent to $406.6 million from $383 million registered in the same period a year ago. For the nine-month period, revenues increased by 11.2 percent to $3.5 billion from $3.17 billion in the same period last year, with vehicle sales inching up by 1.9 percent. Attributable net income rose by 11.1 percent to $1.1 billion from $1.04 billion. Overall, CPRT ranks 6th on our list of Friday's worst-performing stocks. While we acknowledge the potential of CPRT, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CPRT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
