Nvidia (NVDA) To Report Earnings Tomorrow: Here Is What To Expect

Radek Strnad /
2022/11/15 5:05 am EST

Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be reporting earnings tomorrow after market close. Here's what investors should know.

Last quarter Nvidia reported revenues of $6.7 billion, up 3.02% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in operating margin.

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This quarter analysts are expecting Nvidia's revenue to decline 18% year on year to $5.81 billion, a deceleration on the 50.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 per share.

Nvidia Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 3.44%.

Looking at Nvidia's peers in the processors and graphics chips segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. AMD delivered top-line growth of 29% year on year, missing analyst estimates by 1.48% and Qualcomm reported revenues up 22% year on year, exceeding estimates by 0.25%. AMD traded up 2.54% on the results, and Qualcomm was down 5.34%. Read our full analysis of AMD's results here and Qualcomm's results here.

There has been positive sentiment among investors in the processors and graphics chips segment, with the stocks up on average 24.6% over the last month. Nvidia is up 39.2% during the same time, and is heading into the earnings with analyst price target of $197.91, compared to share price of $165.86.

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