Nvidia (NVDA) Q1 Earnings: What To Expect

Petr Huřťák /
2023/05/23 4:29 am EDT

Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be reporting results tomorrow after market hours. Here's what to look for.

Last quarter Nvidia reported revenues of $6.05 billion, down 20.8% year on year, in line with analyst expectations. Despite the stock rising on the results, it was a mixed quarter for the company, with a beat on the bottom line but a decline in operating margin.

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This quarter analysts are expecting Nvidia's revenue to decline 21.4% year on year to $6.52 billion, a deceleration on the 46.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.92 per share.

Nvidia Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing six upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.42%.

Looking at Nvidia's peers in the processors and graphics chips segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Qualcomm's revenues decreased 16.9% year on year, beating analyst estimates by 1.73% and Intel reported revenue decline of 36.2% year on year, exceeding estimates by 5.25%. Qualcomm traded down 2.07% on the results, Intel was down 2.45%. Read our full analysis of Qualcomm's results here and Intel's results here.

There has been positive sentiment among investors in the processors and graphics chips segment, with the stocks up on average 6.25% over the last month. Nvidia is up 15.3% during the same time, and is heading into the earnings with analyst price target of $293.3, compared to share price of $311.43.

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The author has no position in any of the stocks mentioned.