Shares of chipmaker Nvidia fell 3 percent in premarket trading Thursday after the company’s highly anticipated release Third quarter results.
While key metrics topped expectations, investors appeared disappointed by the company’s guidance on revenue and declining gross margins.
Nvidia, the world’s largest company by market capitalization, posted revenue of $35.1bn (£27.8bn) for the third quarter, well ahead of analysts’ estimates of $33.2bn. Earnings per share came in at $0.81, compared to expectations of $0.74.
However, gross margins were down from 75.1% to 74.6% quarter-on-quarter and Nvidia guided for last quarter revenue of $37.5bn, plus or minus 2%, just short of Wall Street expectations of $37bn. Will be next.
AJ Bell investment analyst Dan Coatsworth said: “At face value, Nvidia has once again produced the kind of growth most companies will never achieve in their lifetime.
“What worried investors this time was the quarterly decline in gross margins, with guidance for them to fall further in the coming quarter, and weaker-than-expected forward guidance for revenue.
“Investors have enjoyed Nvidia’s spectacular share price growth over the past two years and that has led them to think it’s invincible,” he added. He added, “In reality, a small drop in margins is not a reason to panic, especially when they are just over 70% which many companies can only dream of.”
US federal prosecutors allege that Adani and seven other defendants were involved in a scheme to bribe Indian officials to win contracts for solar projects.
Shares of Adani Enterprises, Adani Group’s flagship company, had fallen nearly 23 percent by the end of the trading session in India. Meanwhile, energy company Adani Power (ADANIPOWER.NS) down 9 percent, renewable energy firm Adani Green Energy (ADANIGREN.NS) declined by 19 percent and logistics company Adani Ports and Special Economic Zone (ADANIPORTS.NS) was 14% in red.
The fall in Adani group companies was the worst in India’s Nifty 50 (^NSEI), which closed the session 0.7% in the red.
In one statement On Thursday, the Adani Group said the allegations were “baseless”.
“The Adani Group has always maintained and remains committed to maintaining the highest standards of governance, transparency and regulatory compliance in all jurisdictions of its operations.”
US retail giant Target’s stock closed 21 percent in the red in Wednesday’s session, after the company reported earnings. Remembered on the forecastas well as lowering its full-year guidance.
Posted an earnings per share target of $1.85 for the third quarter, down about 12% from last year. Total revenue of $25.7bn was just 1.1% higher than the same period last year.
For the fourth quarter, Target said it expects roughly flat comparable sales and adjusted earnings of $1.85 to $2.45 per share. That translated to adjusted earnings per share in the range of $8.30 to $8.90 for the full year, it said.
These findings are consistent with fellow retail giant Walmart (WMT) released another. Strong earnings report And exalted his guidance.
On the back of both results, founder and CEO of R5 Capital Scott Mishkin spoke to Yahoo Finance. About why Target’s results told a different story than Walmart’s.
Target’s lapses in execution create “a huge disconnect between what’s happening in the physical stores and what’s happening with the rest of the company,” and we think that’s a big problem for Target, he said. is
Also released by Chinese technology company Baidu. Disappointing quarterly resultsis reporting a 3% drop in third-quarter revenue on Thursday.
Baidu’s New York-listed shares were down 2% in premarket trading Thursday morning.
The company posted revenue of 33.6 billion yuan (£3.7bn) for the third quarter, down 3% on the same period last year. Meanwhile, net income rose 14 percent to 7.6 billion yuan.
Robin Li, co-founder and CEO of Baidu, said: “Baidu Core’s third-quarter top line reflects continued weakness in our online marketing business, driven by the growth of our AI cloud business.
“Despite near-term pressures, we remain steadfast in our AI-focused strategy and are confident in our long-term momentum,” he added. “As we further scale AI, we’re motivated to explore how it can drive innovation and create value for consumers, businesses and society at large.”
Shares in JD Sports fell 13 percent on Thursday morning, after the UK sportswear retailer warned on profits.
The company said given the “volatile trading environment” after October trading, it expects pre-tax profit to be at the lower end of its original guidance range of £955m ($1.2bn) to £1.04bn for the year. .
In its trading update on Thursday, JD Sports said third-quarter revenue for the group was down 0.3 percent.
Régis Schultz, CEO of JD Sports Fashion Plc, said October’s volatile trading activity reflected “higher promotional activity and milder weather”.
AJ Bell’s Coatsworth said: “JD Sports’ target to score £1 billion in annual profits has been kicked down the road for the second year in a row.”
However, he added that “even if JD Sports falls short of the £1 billion target again, it cannot be denied that it is one of the biggest retail success stories of the last decade.”
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