Nvidia (NVDA) Q2 Earnings: What To Expect

Radek Strnad /
2022/08/23 4:20 am EDT
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Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be reporting earnings tomorrow after market close. Here's what you need to know.

Last quarter Nvidia reported revenues of $8.28 billion, up 46.4% year on year, beating analyst revenue expectations by 2.38%. It was a mixed quarter for the company, with an exceptional revenue growth but an underwhelming revenue guidance for the next quarter.

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This quarter analysts are expecting Nvidia's revenue to grow 2.97% year on year to $6.7 billion, slowing down from the 68.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.

Nvidia Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing 22 downward 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 4.16%.

Looking at Nvidia's peers in the processors and graphics chips segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. AMD delivered top-line growth of 70.1% year on year, beating analyst estimates by 0.31% and Qualcomm reported revenues up 35.6% year on year, exceeding estimates by 0.76%. AMD traded down 4.73% on the results, and Qualcomm was down 2.22%. Read our full analysis of AMD's results here and Qualcomm's results here.

Investors in the processors and graphics chips segment have had steady hands going into the earnings, with the stocks up on average 1.48% over the last month. Nvidia is up 0.79% during the same time, and is heading into the earnings with analyst price target of $224.2, compared to share price of $171.52.

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