Earnings Results: Nvidia stock tumbles after company says revenue fell way shy of expectations

by | Aug 8, 2022 | Stock Market

Shares of Nvidia Corp. were tumbling more than 5% in morning trading Monday after the semiconductor company disclosed that it expects to fall well short of revenue expectations for its latest quarter, largely due to gaming weakness. The company expects fiscal second-quarter revenue of $6.7 billion, up from $6.5 billion a year before, whereas analysts were expecting $8.1 billion. Nvidia’s
previous forecast had also been for $8.1 billion. The Monday announcement came weeks ahead of Nvidia’s scheduled earnings-report date of Aug. 24.

The company noted in a release that the performance was “primarily reflecting weaker-than-forecasted gaming revenue.” Nvidia expects to report $2.04 billion in gaming revenue, down 44% sequentially and off 33% from a year before, and below the FactSet consensus of $3.04 billion. The company also anticipates $3.81 billion in data-center revenue, up 1% sequentially and 61% ahead of what the company posted a year earlier, but slightly below the FactSet consensus of $3.99 billion. “The shortfall relative to the May revenue outlook of $8.10 billion was primarily attributable to lower sell-in of gaming products reflecting a reduction in channel partner sales likely due to macroeconomic headwinds,” executives said in the release. “In addition to reducing sell-in, the company implemented …

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