Two weeks after Nvidia issued a sales and margin warning, all eyes are on the quarterly guidance that is expected in the company’s earnings report on Wednesday.
Among analysts polled by FactSet, the consensus is that Nvidia reports July quarter (fiscal second quarter) revenue of $6.7 billion, GAAP EPS of $0.35, and non-GAAP EPS of $0, 50. The revenue consensus matches the quarterly figure provided in Nvidia’s Aug 8 pre-announcement.
For the October quarter – Nvidia typically shares quarterly sales, margin and expense guidance in its reports – the revenue consensus is $6.91 billion (down 3%).
Eric Jhonsa, tech columnist at Real Money, will be live blogging Nvidia’s earnings, which is expected at 4:20 pm ET, along with a conference call with management, scheduled for 5 pm.
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16:34 ET: Nvidia CFO commentary is live. Here is a table showing segment-level revenue:
16:30 ET: Nvidia notes it spent $3.44 billion on buybacks/dividends in FQ2 and says it plans to continue buybacks in FY23 (ends Jan 23).
The line “payments related to common stock buybacks” on Nvidia’s cash flow statement shows $3.35 billion in payments related to the buyback.
16:26 ET: It might also help: The company is targeting a non-GAAP FQ3 gross margin of 65%, plus or minus 50 bps. This suggests that it does not expect to receive large inventory charges during the quarter.
16:25 ET: Perhaps helping Nvidia’s stock: The company says that while revenue from the gaming and professional visualization segment is expected to fall Q/Q in FQ3, Data Center and Automotive revenue is expected to increase.
16:24 ET: The FQ3 sales guide is well below the consensus. But investor expectations were low after Nvidia’s warning. Shares are now up just 0.6%.
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16:22 ET: Shares were down 1.9% after hours.
16:21 ET: The results are out. FQ2 revenue of $6.7 billion matches the consensus. Non-GAAP EPS of $0.51 exceeds $0.01.
Nvidia guides to FQ3 revenue of $5.9 billion, plus or minus 2%. This is below a consensus of $6.91 billion.
4:11 pm ET: One thing to keep an eye on, as Nvidia reports: whether the company will make more inventory-related charges in FQ3.
In its notice, Nvidia said it is charging $1.32 billion in charges (mostly inventory related) for FQ2, with the company’s GPU purchase commitments to foundries believed to be the main culprits. Due to charges, Nvidia forecast a non-GAAP FQ2 gross margin of just 46.1% (+/-50 bps), well below the original guidance of 67.1%.
16:01 ET: Nvidia closed up 0.2%. The FQ2 report is expected at 4:20 pm ET.
16:00 ET: Along with its sales guidance for the FQ3, any feedback Nvidia shares on demand trends for its gaming and data center segments will be closely watched.
In its notice, the company estimated that gaming segment sales were down 33% Y/Y in FQ2, thanks to smoother gaming GPU demand and channel inventory fixes. On the other hand, Data Center revenue was estimated at 61% Y/Y, thanks in part to strong server GPU demand from the cloud giants.
15:56 ET: Ahead of the report, Nvidia shares rose 0.7% today to $172.90. But stocks are still down 41% year-to-date thanks to broader tech sector weakness and concerns over gaming GPU demand trends.
15:53 ET: FactSet’s consensus is that Nvidia reports FQ2 revenue of $6.7 billion (in line with the number provided in its notice) and non-GAAP EPS of $0.50.
The FQ3 revenue consensus is $6.91 billion, though it’s possible (given Nvidia’s warning) that informal expectations are lower.
15:51 ET: Hi, this is Eric Jhonsa. I will be live posting the Nvidia earnings report and calling.