Nvidia (NVDA) lowers Q2 2023 revenue guidance below Wall Street estimates

Published May 25, 2022 1:43 PM, by Morgan Shaver

As part of NVIDIA's (NVDA) earnings report for Q1 2023, it was revealed that Q2 2023 revenue guidance is lower than Wall Street estimates. More specifically, that revenue for Q2 2023 is expected to be $8.10 billion, plus or minus 2 percent. This includes an estimated reduction of approximately $500 million in relation to the war in Ukraine and lockdowns in China as a result of the COVID pandemic.

In the report from NVIDIA, the outlook for Q2 FY203 is shared including details like the GAAP gross margin for Q2 FY2023 sitting at 65.1 percent, and GAAP operating expenses at $2.46 billion. There's also a bulleted list that breaks things down even further in terms of the company's outlook for the second quarter of fiscal 2023.

• Revenue is expected to be $8.10 billion, plus or minus 2%. This includes an estimated reduction of approximately $500 million relating to Russia and the COVID lockdowns in China.
• GAAP and non-GAAP gross margins are expected to be 65.1% and 67.1%, respectively, plus or minus 50 basis points.
• GAAP and non-GAAP operating expenses are expected to be approximately $2.46 billion and $1.75 billion, respectively.
• GAAP and non-GAAP other income and expense are expected to be an expense of approximately $40 million, excluding gains and losses from non-affiliated investments.
• GAAP and non-GAAP tax rates are expected to be 12.5%, plus or minus 1%, excluding any discrete items.

Outside of that, the earnings report was largely good, with a statement from CEO and Founder of NVIDIA, Jensen Huang, remarking upon aspects such as gaming achieving a record quarter, and how the company is gearing up with a wave of new products.

What are your thoughts on the earnings report from NVIDIA? Does it surprise you that the company's revenue guidance for Q2 2023 is lower than Wall Street estimates? Let us know in Chatty, and for more on Nvidia (NVDA), be sure to read through our coverage of the company's Q1 2023 earnings results beating revenue and EPS expectations.