We analyze NVIDIA's negative pre-earnings press release and explore the commentary. First we find the expected China impact, but also we uncover something we did not know which was data center warnings which echoes an earlier warning from Intel.
NVIDIA negatively pre-announced their Q4 earnings this morning with results missing expectations by a wide margin. The miss is made more noteworthy by the fact that it followed a weak Q3. We published an earlier article following NVIDIA's miss on November 15, which highlighted channel inventory as the primary culprit.
This morning’s NVIDIA press release was run through our NLP platform, resulting in 3 observations of which the last was particularly intersting:
The Amenity Score measuring the tone of the press release scored a -86 (scale -100 to +100), compared to +12 in Q3 that was already at a multi-quarter low.
As we highlighted in our Amenity Forecast Index update last week, China macro weakness is taking a bite out of outlooks across different sectors, and NVIDIA proved to be no exception:
TE Connectivity (1/23/19):
Union Pacific (1/24/19):
Las Vegas Sands (1/23/19):
Last Thursday, Intel also reported disappointing guidance, in part signaling a pause in demand from Cloud customers. This sentiment was echoed by NVIDIA this morning, and could signal broader issues in the Tech sector:
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This communication does not represent investment advice. Transcript text provided by S&P Global Market Intelligence.
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