NVIDIA reported third-quarter earnings figures disappointing investors in EPS but the revenue beat expectations.
Nvidia’s revenue came to $5.93 billion, beating the analyst’s expectations of $5.80 billion. Q3 revenue was down 17% from 2021 and 12% lower from the second quarter.
Earnings per share came at $0.58 well below the forecasts of $0.67. The EPS was 50% lower than a year ago and 14% higher from the second quarter. GAAP earnings per diluted share for NVIDIA’s Q3 were $0.27, down 72% from a year ago and 4% higher from the Q2 of 2022.
Data Center revenue rose 31% to $3.83 billion.
Gaming revenue dropped 51% to $1.57 billion.
Professional Visualization for Q3 dropped 65% to $200 million.
Automotive and Embedded increased by 86% to $251 million.
NVIDIA’s Outlook
Nvidia now expects for the fourth quarter:
Revenue is expected to be around $6.00 billion.
The guidance for the GAAP and non-GAAP gross margins are 63.2% and 66.0%, respectively, plus or minus 50 bps.
GAAP and non-GAAP operating expenses are estimated now to be $2.56 billion and $1.78 billion, respectively.
GAAP and non-GAAP other income and expenses are forecasted to be $40 million.
GAAP and non-GAAP tax rates are estimated at 9.0%, plus or minus 1%.
NVDA Stock Price
NVIDIA stock closed 4.54% lower at $159.10. In the after-hours trading, NVDA is adding 1.90% at $162.10. The stock has lost over 45% since the beginning of the year and is down 45.63% in the last 12 months. NVDA stock has a 52-week trading range between $108.13 and $346.47. The all-time high for NVIDIA stock was 346.47 on November 22, 2021.
NVDA stock has regained positive momentum after the previous week managed to break above the 100-day moving average. Bulls now target the next strong resistance level at the 200-day moving average of $181.83. In the case of a move lower the initial support stands at the 100-day moving average which from resistance has now turned into support at $149.83. A break below might attract more sellers targeting the 50-day simple moving average at $132.35.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).
