If you’ve been following along with the financial reports for NVIDIA (NVDA) you may be interested, and potentially dismayed, to hear the company released an early look at Q2 earnings data which indicates a noticeable revenue dip with revenue set at $6.7 billion, far below its original outlook of $8.1 billion.
Something to note with Nvidia’s previous $8.1 billion outlook is that this had already been lowered past Wall Street estimates and includes an estimated reduction of approximately $500 million. Cited reasons for lowering its revenue guidance include the war in Ukraine and lockdowns in China as a result of the COVID pandemic.
The news of Nvidia failing to hit its target comes a few weeks ahead of when the company plans to share its Q2 earnings report on August 24. At that time, we’ll be able to dig even deeper into where Nvidia is at for Q2, and what the outlook is moving forward.
According to Nvidia, the miss in hitting its $8.1 billion target primarily reflects weaker-than-forecast gaming revenue, which fell 44 percent sequentially and 33 percent from 2021 as reported by outlets like CNBC.
Elaborating further, Nvidia pointed to things like “lower sell-in of gaming products” and a reduction in channel partner sales “likely due to macroeconomic headwinds” among the factors contributing to the latest dip in revenue. Other factors include ongoing supply chain disruptions.
Despite this, the company believes its long-term gross margin profile remains intact. In a quote from CNBC, executive vice president and CFO of Nvidia, Colette Kress, stated:
Following the less than stellar results from Nvidia today, shares dropped 8 percent. It’ll be interesting to see whether they’ll be able to bounce back, or whether they’ll dip further once Nvidia shares its earnings report on August 24. Speaking of which, we’ll be covering those earnings report results here at Shacknews, so be sure to check back for more on where Nvidia is at for Q2!
For more on what else Nvidia has been up to, we’ve got a wealth of previous coverage worth reading through including how Nvidia (NVDA) lowered its Q2 2023 revenue guidance below Wall Street estimates, and how Nvidia (NVDA) increased its share buyback to $15 billion through the end of 2023.
Morgan Shaver posted a new article, NVIDIA (NVDA) preannounces $1.4 billion Q2 2022 revenue miss
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