In a commentary accompanying second quarter results, Nvidia’s Chief Financial Officer (CFO) Colette Kress revealed some eye-opening details concerning the company’s potentially worse revenue decline during the second quarter. It appears like Nvidia’s management potentially propped up an otherwise negative-growth quarter through revenue smoothening – a strategy that artificially distributes revenue and earnings between quarters to dampen out acute declines so that stock investors do not freak out. However, the company “desperately” accelerated more than a quarter of a billion dollars of sales from a later financial period into the quarter. The 3% annual growth rate still paints NVDA as a growth stock, and justifiably so. Nvidia reported second-quarter revenue of $6.7 billion, down 19% sequentially but showing a respectable 3% year-over-year growth. Nvidia’s Q2 Earnings Report: Manipulated?

Potential management shenanigans during the last quarter might have helped avoid a jittery market reaction to a potentially worse earnings outcome, but the company may not be out of the woods yet. The computing graphics chip manufacturing giant was in worse trouble than depicted in recent earnings results. 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!įor 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.Nvidia’s ( NVDA) second-quarter earnings results for the three-month period ended July 31, 2022, show concerning revenue declines, inventory write-offs, poor cash flow generation, and a glaring incidence of potential earnings management – a controversial and unsustainable corporate practice that may artificially prop up NVDA stock price in the short term. 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. We plan to continue stock buybacks as we foresee strong cash generation and future growth.”įollowing the less than stellar results from Nvidia today, shares dropped 8 percent. “We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. In a quote from CNBC, executive vice president and CFO of Nvidia, Colette Kress, stated: Other factors include ongoing supply chain disruptions.ĭespite this, the company believes its long-term gross margin profile remains intact. © Google FinanceĮlaborating 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. 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.Īccording 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. 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. Cited reasons for lowering its revenue guidance include the war in Ukraine and lockdowns in China as a result of the COVID pandemic. 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. 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.

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