Traders Await Nvidia Earnings Report | Closing Bell

Added: 2026-05-20

[00:00:00]And right now we are two minutes away from the end of the trading day.

[00:00:03]Romaine Bostick here with Isabella filling in for Katie Greenfeld.

[00:00:06]We're taking you through to that closing bell with the global simulcast.

[00:00:09]Tim joins us from the radio booth, joined today by Emily in for Carol Massar. Welcome to our audiences across all of our Bloomberg platforms television, radio, our partnership with YouTube.

[00:00:20]As we prepare for what is going to dominate the rest of the afternoon.

[00:00:23]Tim. And that, of course, are those earnings from Nvidia. Okay, I was hoping I was hoping you were going there. Yeah, yeah, I didn't know.

[00:00:29]I thought you were going to maybe throw a curveball at me.

[00:00:31]Yeah I'm watching Nvidia ahead of this. Shares up right now by 1.2%.

[00:00:37]Questions remain about competition from some new entrants and even the way that some hyperscalers are, you know, able to train and use inference.

[00:00:45]So a lot of questions about this, and it will really set the tone for the AI trade starting in just about 20 minutes. And I think also analysts watching here, not just for an Nvidia beat, but the scale of how this company can beat expectations for the last many quarters. Now the earnings have come out and it's been pretty much a beat across the board.

[00:01:05]And to Emily's point, I mean the growth outlook, it's still strong, but it's expected to decelerate in the coming years.

[00:01:10]And that could further impede on the stock price.

[00:01:13]I hate to be the party pooper, but I don't think that something can just go up, up, up. Ah, who knows, maybe it can.

[00:01:18]Yeah, well it's been going up, up, up for about three years here.

[00:01:21]So we'll see whether anything changes that calculus tonight.

[00:01:24]I do just want to point out there's a lot more moving today besides just the chip stocks and Nvidia. But well let's face it, not a whole lot else. You are seeing a big bump in some of the airline names like United and Delta as well as the cruise lines as well.

[00:01:37]But of course this is going to be a day where big tech dominates the afternoon when we get those earnings from Jensen Wong and his team in just about 20 minutes. The closing bell is now thinking here in New York, an update here after what was effectively three days of market malaise with yields down, stocks are up, the Dow adding more than 600 points, or 1.3%, the S&P higher by about 79 points at 1%, the Nasdaq up about 1.5%.

[00:02:01]Tim and the Russell 2000. Closing out the day higher by 2.6%.

[00:02:05]Well, it is not just Nvidia that's reporting results.

[00:02:08]We're also getting some results from into it.

[00:02:10]Remember this company announcing that it's cutting 17% of jobs to focus on AI.

[00:02:15]But some other numbers that we are getting third quarter net revenue coming in at $8.56 billion into it. As far as the outlook sees, fourth quarter adjusted earnings per share $3.56 to $3.62.

[00:02:28]That's above estimates of $3.15. It did raise its fiscal year revenue guidance. Shares in the after hours bouncing around a little bit up as much as 5%, now up about 4% in the after hours.

[00:02:38]Yeah, this kind of gave me a little bit. Some of the concerns that we saw earlier in the cash session and we had normal Linda and I was kind of asking her.

[00:02:45]I mean, you have analysts projecting coming into this print, projecting record quarterly revenue of more than $8 billion.

[00:02:51]They got that. And when you look at on your Bloomberg terminal what those estimates are going out for the next four, six, eight quarters, it's all double digit revenue growth as well as increases in profitability. So if there is sort of, uh, uh, some sort of, uh, uh, you know, I guess killing of the software space because of I, at least for right now, it hasn't shown up on the radar of a lot of folks.

[00:03:13]Yeah, that's a good point. Uh, third quarter adjusted EPs.

[00:03:15]Uh, we're also getting that number now. Uh, $12.80.

[00:03:19]That's above estimates of $12.54. Shares in the after hours, down about 3%. Uh, we are focused, of course, on Nvidia and the broader markets as well, in addition to into it in the S&P 500, it was relatively broad based today. Isabel, uh, 349 stocks higher in the S&P 152 lower. I know if you look at the map, it's mostly green on the screen. Biggest gainers of course.

[00:03:41]Undoubtedly we have tech higher by 1.5%, financials by 8/10 of a percent, consumer discretionary also in the green.

[00:03:48]And unsurprisingly the biggest loser is energy.

[00:03:50]We are seeing a slide in oil prices on hopes for a deal to end the war in Iran.

[00:03:54]And you're seeing that lower by nearly 1%.

[00:03:57]All right. Well, let's get to some of the gainers in today's session. Again, all eyes on Nvidia.

[00:04:01]Worth checking in on how that stock did today up 1.3%.

[00:04:05]Remember, we are kind of just a couple of weeks ago watching 6 trillion as the market cap for this company up uh, now up this year, just about 20%.

[00:04:13]Going into today's print, the market value of about $5.4 trillion.

[00:04:18]As far as numbers go. Revenue estimate for the first quarter $79.15 billion. The revenue estimate for the second quarter. Analysts see $87.2 billion in for the year, $370.8 billion. So some of the numbers to keep in mind ahead of that print, uh, adjusted gross margin estimate to the tune of 75% for the second quarter. Uh, and adjusted operating expense estimate of $7.67 billion, just a few numbers ahead of that print in just about 17 minutes. Also, questions, I think a lot of consumers and a lot of analysts and investors have when it comes to competition, especially with China, Broadcom, AMD, Google and more.

[00:04:57]So keep an ear out on the call for any questions about that.

[00:05:01]And speaking of I, let's talk a little bit about some power and utility stocks moving in today's session. To the upside utility stocks climbing after PJM interconnection accelerated plans to pair data centers with energy producers to feed the demands of AI development.

[00:05:16]You got constellation higher today by 7.9%.

[00:05:19]You've got Vistra Corp up by 6.9%. The PJM changes are now expected out.

[00:05:24]Power producers secure additional data center contracts and reduce the risk of prolonged uncertainty heading into 2027 and a little retail on this Wednesday afternoon. TJX Co's, the parent company of TJ Max and Marshalls, higher in today's session by 5.7%.

[00:05:42]The company raised its sales growth expectations for the year.

[00:05:45]Cautious shoppers are spending on lower priced goods at the companies discount chains. Emily a little retail, maybe a lot of retail because I also have a retail stock for my first decline.

[00:05:55]Our target share is falling about 4% today.

[00:05:59]The company's earnings results honestly not that bad.

[00:06:02]However, the retailer did warn investors after striking a more cautious tone about the coming months, so comp sales jumped 5.6% last quarter.

[00:06:10]It was the biggest increase since the end of 2021 and actually triple the gain analysts were expecting. However, executives warned on the earnings call that there are tougher comps in the current quarter, more cost challenges ahead and the benefit of tax refunds on its business are also fading so that stock down again, closing about 4% lower.

[00:06:31]Another decliners on this Wednesday Hasbro that guidance disappointing in this earnings result coming out today that stock down about 8%.

[00:06:40]The company maintained a sales forecast for the year.

[00:06:43]That was on the low end of what analysts expected.

[00:06:46]The toy maker, home to G.I. Joe action figures and the playing cards Magic the Gathering. I don't play either of these games.

[00:06:53]I'm not sure if you do. Tim.

[00:06:54]They reported that sales in the Metro does.

[00:06:57]Yeah, I feel like romance a big. Oh, yeah.

[00:06:59]Yeah. Okay.

[00:07:00]It. Uh, they reported sales in the first quarter. rose 13% to 1 billion.

[00:07:05]Revenue for the company's games unit rose 26%, but was flat in traditional toys and declined in its entertainment business.

[00:07:13]One chip stock. Of course, we're all watching Nvidia, but there was one chip stock that already reported Analog Devices.

[00:07:20]They actually reported second quarter results that beat expectations and given outlook that some actually saw as strong.

[00:07:27]But we are seeing that stock lower by about 4%.

[00:07:29]It was up about 50% year to date heading into the earnings report.

[00:07:33]So it could have been a little case of the bar just being very high for that report. And I just want to go back and just uh, just flat to into it. Shares is now down about 10% in the after hours trade. If that carries over into the cash session tomorrow, that'll be the biggest saw one day drop or post earnings day going back to 2015. Meanwhile we are getting some earnings out of Elf Beauty. Those shares are moving to the upside, at least with a knee jerk reaction here, with the company saying that its fourth quarter adjusted EPs did beat by about $0.02.

[00:08:01]$0.32, uh, is the number net sales at about $449 million.

[00:08:05]That came in above estimates as well. And the company says that for the full year, here's what to expect the guidance.

[00:08:11]Net sales a range 1.84 to 1.87 billion. The high end of that range is just above the average of analysts estimates of 1.86.

[00:08:20]Your EBITDA forecast forecasts adjusted, of course, 379 to $385 million.

[00:08:27]Now we should point out that is light. The top end of that range, just below the average of analysts estimates of $3.87 million.

[00:08:34]All right. So more retail.

[00:08:36]You've got elf I'm looking over at Urban Outfitters.

[00:08:39]Uh, we're seeing the stock move in the after hours.

[00:08:43]Uh, right now urban Outfitters first quarter comp retail segment sales are up by 5.6%. Still waiting for some of these numbers to cross. Shares higher about by about half a percentage point. Uh, Urban Outfitters first quarter net sales coming in just above estimates at $1.48 billion.

[00:08:59]Once again, shares of Urban Outfitters higher by just about half a percentage point.