Earnings Recap – November 17th
Nvidia announced their third quarter earnings after the bell on Wednesday. Their earnings per share for the quarter was $1.17, edging out the expectation of $1.11, and revenue was $7.10 billion, beating the estimate of $6.82 billion. One major factor was data center sales for Nvidia, up 55 percent from last year to $2.9 billion, and they outperformed in the gaming market as demand for their graphics processors is still sky-high. Nvidia sold $105 million in crypto-specific graphics cards, which was a sharp decrease from last quarter, but this is because Nvidia introduced software into the gaming graphics cards to make sure they weren’t being used for crypto mining. CEO Jensen Huang said that Nvidia could be a major supplier of technology for companies building the metaverse, which includes Meta Platforms, which positions them for even more business opportunities in the future. This all adds up to a very positive quarter for the chip company, and they are still sticking through with the inflation crisis.
Cisco Systems reported their 2021 third quarter earnings on Wednesday, with investors highly awaiting the report. Earnings per share barely beat the expectation of 80 cents per share with 82 cents per share, but revenue was a disappointment as Cisco reported revenue numbers of $12.90 billion, missing estimates of $12.98 billion, which placed a major cloud on the report. The reason behind this was supply constraints, which involved logistics costs as Cisco is a technology company. Even worse, CEO Chuck Robbins said that these effects would be recognized over the next few quarters, which decreases the guidance for Cisco. This quarter will go down as a disappointing one for the business, and we’ll look forward to seeing a surprise at the end of the year.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.