Nvidia to report Q4 2019 earnings

Nvidia to report Q4 2019 earnings

Nvidia CEO Jensen Huang (Photographer: David Paul Morris/Bloomberg via Getty Images)

Nvidia (NVDA) is set to report its Q4 2019 earnings on Thursday, and it’s not expected to be pretty. Analysts are expecting revenue of $2.2 billion versus $2.9 billion in the year ago quarter. The company is also expected to report earnings per share of $0.78 per share compared to $1.72 per share a year ago.

In January, Nvidia CEO Jensen Huang sent a letter to shareholders revising the company’s Q4 guidance, cutting its expected revenue from $2.7 billion to $2.2 billion. The move put pressure on the stock, and, according to Huang, was tied to macroeconomic issues, specifically in China.

Nvidia has made a significant push into the artificial intelligence and machine learnings industries thanks to its data center processing technologies, but the company still relies primarily on its gaming business for more than half of its revenue.

China’s slowing economy is hurting sales for discretionary spending items like Nvidia’s high-priced gaming graphics cards, which allow gamers to play some of the latest games on the market.

Outside of gaming, Huang said that Nvidia saw some of its corporate customers put off data center purchases, which cut into the company’s bottom line.

We’ll update this piece as soon as Nvidia reports.

Email Daniel Howley at dhowley@oath.com; follow him on Twitter at @DanielHowley. Follow Yahoo Finance on Facebook, Twitter, Instagram, and LinkedIn.finance.yahoo.com/

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