How Nvidia Historically Trades Following Earnings

NVIDIA Corporation NVDA reports its fiscal third-quarter 2019 earnings after Thursday's close.

Benzinga took a look back at Nvidia’s last six third-quarter earnings reports to look for any potential patterns in how the stock reacts.

• Q3 2017: shares gained 5.2 percent the day following the report
• Q3 2016: up 29.8 percent
• Q3 2015: up 13.8 percent
• Q3 2014: down 2.1 percent
• Q3 2013: up 6.9 percent
• Q3 2012: down 3.8 percent

See Also: Nvidia Plummets Following Lower Than Expected Q4 Sales Guidance

Nvidia has had some huge moves following third-quarter earnings reports, so traders should be prepared for the potential for major volatility Friday. Big earnings moves haven’t been restricted to just the third quarter either. Nvidia stock has generated a one-day move of at least 4.9 percent following five of its last six earnings reports.

The chart below shows how Nvidia stock has reacted to its past three years of earnings reports:

Here are some potential takeaways from the information outlined above:

• Nvidia tends to have relatively volatile earnings reactions of more than 5 percent.
• Nvidia stock has reacted mostly positively to earnings reports, trading higher the following day 68 percent of the time.
• Nvidia hasn’t had a positive reaction to earnings since Q4 of 2018.
• Over the past 15 quarters, Nvidia stock has averaged a one-day move of +/- 9.6 percent.

According to Optionslam.com, Nvidia’s seven-day implied movement based on the weekly options market is 11.9 percent.

Nvidia's stock closed Wednesday at $197.19 per share. The stock is up 4 percent year-to-date.

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