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Omar Venerio
Omar Venerio
Articles (1728) 

Thursday Morning Market Highlights

Markets down, shares of NVIDIA fall on earnings

US Markets

U.S. stocks were in the red on Thursday morning. The Dow fell 0.26% to 29,362, the S&P 500 index lost 0.15% to 3,562 and the Nasdaq Composite Index was up 0.29% to 11,836.

Gainers

• L Brands Inc​ (NYSE:LB) +16.3%

• Target Corp (NYSE:TGT) +3.9%

• Lowe's Companies Inc (NYSE:LOW) +2.3%

• Chipotle Mexican Grill Inc (NYSE:CMG) +0.1%

• MGM Resorts International (NYSE:MGM) +0.5%

Losers

• Johnson Controls International PLC (NYSE:JCI) -1.1%

• CenterPoint Energy Inc (NYSE:CNP) -1%

• Valero Energy Corp (NYSE:VLO) -1%

• Pfizer (NYSE:PFE) -0.6%

Global Markets

The main European stock markets traded in the red. The U.K.'s FTSE 100 lost 0.73%, France's CAC 40 fell 0.64%, Germany's Dax was down 0.64% and Spain's Ibex 35 slid 0.44%.

In Asia, Japan's Nikkei 225 fell 0.36%, India's BSE Sensex retreated 1.31%, Hong Kong's Hang Seng lost 0.71% and China's Shanghai Composite jumped 0.47%.

NVIDIA Corporation releases earnings report

Shares of NVIDIA Corporation (NASDAQ:NVDA) fell 1.5% on pre-market Thursday morning after the company announced financial results for its third quarter of fiscal 2021. It posted earnings per share of $2.91, beating analysts' estimates by 36 cents, on revenue of $4.73 billion, which grew 57.1% year-over-year and beat expectations by $ 310 million.

Vice president and Chief Financial Officer Colette Kress had the following to say:

"Q3 was another exceptional quarter with record revenue of $4.73 billion, up 57% year-on-year, up 22% sequentially and well above our outlook. Our new NVIDIA Ampere GPU architecture is ramping with excellent demand across our major market platforms. Q3 was also a landmark quarter, both for us and the industry as a whole. As we announced plans to acquire Arm from SoftBank for $40 billion, we are incredibly excited about the combined company's opportunities and we are working through the regulatory approval process. For today, we will focus our remarks on our quarterly performance."

In the quarter, the GAAP gross margin reached 62.6%, up 380 basis points sequentially, or down 100 basis points when compared to the same quarter of fiscal 2020. The Non-GAAP gross margin reached 65.5%, down 50 basis points sequentially, or up 140 basis points when compared to the same quarter of the prior year.

Looking ahead the fourth quarter of fiscal 2021, the company expects revenue to be around $4.80 billion, plus or minus 2%. Further, the GAAP and non-GAAP gross margins are expected to be 62.8% and 65.5%, respectively, plus or minus 50 basis points.

At the end of September, Mario Gabelli (Trades, Portfolio) reduced his investment in the stock by 13% to 16,578 shares, while Ken Fisher (Trades, Portfolio) boosted his investment by 2% to 1,076,588 shares. Julian Robertson (Trades, Portfolio) sold out of the stock.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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