US graphics card maker Nvidia Corporation (NASDAQ:NVDA) publishes second-quarter earnings after Wednesday’s closing bell, though again it has already flagged that quarterly revenue will fall US$1.4bn short of the US$8.1bn guided, as sales of gaming chips weakened.
Profit margins are expected to be softer too, hit by a running down of excess inventory, while cost control will also be one of the key issues Wall Street will be watching.
As it warned of “ongoing macroeconomic uncertainty” last time, this is projected to play out with lower spending on hardware, hitting demand for chips.
Nvidia's graphics cards are also used extensively in crypto mining, so the wobble in all things bitcoin has had a clear effect on trading.
There’s a midweek lull in the schedule for London-listed results, but while construction group Costain PLC is reporting it is not expected to offer many surprises.
A recent trading update revealed revenues slightly ahead of expectations due to recovery mechanisms within contracts and increasing volumes across both divisions.
Operating profit was in line, reflecting operational progress and management of inflation, while broker Peel Hunt noted that supply chain pressures remained well-managed.
There was also no reference to legacy or contract issues, which the broker said would also be reassuring, given the company’s spotty history.
Given a strong cash performance, Peel Hunt increased its full-year average net cash from £90mln to £100mln.
Significant announcements on Wednesday
Interims: Anglo Pacific Group PLC (LSE:APF, TSX:APY, OTC:AGPIF), Costain PLC
AGMs: Creightons PLC (LSE:CRL), Lamprell PLC (LSE:LAM, OTC:LMPRF)
Economic announcements: MBA Mortgage Applications (US), Durable Goods Orders (US), Pending Homes Sales (US), Crude Oil Inventories (US)
US earnings: Nvidia, RBC, Salesforce, Snowflake, Williams Sonoma, Victoria’s Secret