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Yahoo Finance

Nvidia announces preliminary financial results for second quarter fiscal 2023.

Preliminary second quarter revenue of $6.70 billion versus outlook of $8.10 billion

Shortfall versus outlook primarily driven by weaker Gaming revenue

Management to discuss financial results and outlook on Aug. 24 earnings call

SANTA CLARA, Calif., Aug. 08, 2022 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today announced selected preliminary financial results for the second quarter ended July 31, 2022.

Second quarter revenue is expected to be approximately $6.70 billion, down 19% sequentially and up 3% from the prior year, primarily reflecting weaker than forecasted Gaming revenue. Gaming revenue was $2.04 billion, down 44% sequentially and down 33% from the prior year. Data Center revenue was $3.81 billion, up 1% sequentially and up 61% from the prior year.

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. In addition to reducing sell-in, the company implemented pricing programs with channel partners to reflect challenging market conditions that are expected to persist into the third quarter.

Data Center revenue, though a record, was somewhat short of the company’s expectations, as it was impacted by supply chain disruptions.

Second quarter results are expected to include approximately $1.32 billion of charges, primarily for inventory and related reserves, based on revised expectations of future demand.

“Our gaming product sell-through projections declined significantly as the quarter progressed,” said Jensen Huang, founder and CEO of NVIDIA. “As we expect the macroeconomic conditions affecting sell-through to continue, we took actions with our Gaming partners to adjust channel prices and inventory. “NVIDIA has excellent products and position driving large and growing markets. As we navigate these challenges, we remain focused on the once-in-a-generation opportunity to reinvent computing for the era of AI,” he said.

“The significant charges incurred in the quarter reflect previous long-term purchase commitments we made during a time of severe component shortages and our current expectation of ongoing macroeconomic uncertainty,” said Colette Kress, EVP and CFO of NVIDIA.

“We believe our long-term gross margin profile is intact. We have slowed operating expense growth, balancing investments for long-term growth while managing near-term profitability. We plan to continue stock buybacks as we foresee strong cash generation and future growth,” she said.

 

Revenue

$8.10 billion, plus or minus 2%

$6.70 billion

Gross margin – GAAP
Gross margin – non-GAAP

65.1%, plus or minus 50 bps
67.1%, plus or minus 50 bps

43.7%, plus or minus 50 bps
46.1%, plus or minus 50 bps

Operating expenses – GAAP
Operating expenses – non-GAAP

$2.46 billion
$1.75 billion

$2.42 billion
$1.75 billion

GAAP and non-GAAP other income and expense

$40 million expense

$24 million and $16 million expense, respectively

GAAP and non-GAAP tax rate

12.5%, plus or minus 1%, excluding discrete items

-35% GAAP (benefit) and 2% non-GAAP, including discrete items

1 Announced in May 2022 in connection with the company’s press release announcing its financial results for first quarter fiscal 2023.


Gaming

$2.04

Down 44%

Down 33%

Data Center

3.81

Up 1%

Up 61%

Professional Visualization

0.50

Down 20%

Down 4%

Automotive

0.22

Up 59%

Up 45%

OEM and Other

0.13

Down 12%

Down 66%

Total

$6.70

Down 19%

Up 3%

The preliminary results for the second quarter ended July 31, 2022, are an estimate, based on information available to management as of the date of this release, and are subject to further changes upon completion of the company’s standard quarter and year-end closing procedures. This update does not present all necessary information for an understanding of NVIDIA’s financial condition as of the date of this release, or its results of operations for the second quarter. As NVIDIA completes its quarter-end financial close process and finalizes its financial statements for the quarter, it will be required to make significant judgments in a number of areas. It is possible that NVIDIA may identify items that require it to make adjustments to the preliminary financial information set forth above and those changes could be material. NVIDIA does not intend to update such financial information prior to release of its final second quarter financial statement information, which is currently scheduled for Aug. 24, 2022.

Conference Call and Webcast Information NVIDIA will host a conference call on Wednesday, Aug. 24, at 2 p.m. PT (5 p.m. ET), to discuss its financial results for the second quarter of fiscal year 2023.

The call will be webcast live (in listen-only mode) on investor.nvidia.com . The company’s prepared remarks will be followed by a question-and-answer session, which will be limited to questions from financial analysts and institutional investors.

Ahead of the call, NVIDIA will provide written commentary on its second-quarter results from its CFO, Colette Kress. This material will be posted to investor.nvidia.com immediately after the company’s results are publicly announced at approximately 1:20 p.m. PT.

The webcast will be recorded and available for replay until the company’s conference call to discuss financial results for its third quarter of fiscal year 2023.

Non-GAAP Measures In addition to U.S. GAAP financial measures, this press release includes preliminary estimates of non-GAAP measures of certain components of financial performance. These preliminary estimates of non-GAAP measures include non-GAAP gross margin, operating expenses, other income and expense, and income tax expense.

These non-GAAP financial measures exclude stock-based compensation expense, acquisition-related and other costs, gains or losses from non-affiliated investments, interest expense related to amortization of debt discount and the associated tax impact of these items, where applicable.

A preliminary updated reconciliation of GAAP to non-GAAP gross margin, operating expenses, other income and expenses and tax rate is as follows:


GAAP gross margin

43.7%

Stock-based compensation expense, acquisition-related costs, and other costs

2.4

Non-GAAP gross margin

46.1%

 

 

GAAP operating expenses

$2,416

Stock-based compensation expense and acquisition-related costs

(667)

Non-GAAP operating expenses

$1,749

 

 

GAAP other expense, net

$24

Losses from non-affiliated investments and other costs

(8)

Non-GAAP other expense, net

$16

 

 

GAAP tax rate (benefit)

(35%)

Tax impact of non-GAAP adjustments

37

Non-GAAP tax rate

2%

NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s financial performance. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies.

About NVIDIA Since its founding in 1993, NVIDIA (NASDAQ: NVDA) has been a pioneer in accelerated computing. The company’s invention of the GPU in 1999 sparked the growth of the PC gaming market, redefined computer graphics and ignited the era of modern AI. NVIDIA is now a full-stack computing company with data-center-scale offerings that are reshaping industry. More information at https://nvidianews.nvidia.com/ .

For further information, contact:

Simona Jankowski

Robert Sherbin

NVIDIA Corporation

NVIDIA Corporation

Certain statements in this press release including, but not limited to, statements as to: NVIDIA’s preliminary results for the second quarter of fiscal 2023; our excellent products and position driving large and growing markets; challenging market conditions expected to persist into the third quarter; our expectation that the macroeconomic conditions affecting sell-through will continue; our focus on the once-in-a-generation opportunity to reinvent computing for the era of AI; our belief that our long-term gross margin profile is intact; slowing operating expense growth, balancing investments for long-term growth while managing near-term profitability; our plan to continue stock buybacks; our belief in our strong cash generation abilities and future growth; and NVIDIA’s quarter-end financial close process and preparation of financial statements for the quarter are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of new products and technologies or enhancements to our existing product and technologies; market acceptance of our products or our partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2022 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.

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Stock RGEN

Repligen Corporation

Us7599161095, medical equipment, supplies & distribution.

Market Closed - Nasdaq 04:00:00 2024-08-15 pm EDT 5-day change 1st Jan Change
162.61 +1.44% -2.51% -9.56%
Aug. 06 MT
Jul. 31 MT
  • Repligen : Investor Presentation August 2024 Presentation

Investor Presentation

August 2024

Repligen Overview

"Inspiring Advances in Bioprocessing"

Bioprocess market: Signs of improvement and known challenges

Bioprocessing market challenges

  • Market-wide 1H 2024
  • CDMO project volumes muted
  • Pharma capital spend conservatism
  • Repligen 2024 known headwinds ~$85M
  • Proteins : Cytiva fully in-house, partner destocking/discontinuations
  • COVID : Wind-down
  • China : Decline in demand; uncertainty

Repligen indications of recovery

  • Pharma order strength, esp. consumables
  • CDMO order strength outside of Top 10 accounts
  • Filtration and New Modalities momentum
  • Return of biotech funding
  • Proteins strategic play with Tantti acquisition
  • Exciting new products:
  • TangenX® SC TFF (self-contained holderless)

• KrosFlo® RPM Systems (with integrated FlowVPX®)

  • KrosFlo® RS 10 (scale down for new modalities)
  • New SU film and bags

Our Lens: 2024 turning point, 2025 return to more robust growth

Base

Confident in markets and ability to

2019

2020

2021

2022

2023

business

outpace market growth

+31%

+12%

+38%

+34%

-9%

growth

Expect revenue

2H24>1H24

"Base" business excludes COVID-related & inorganic M&A revenue.

We are the innovation leader in bioprocessing - 2023 Snapshot

Enabling efficient, single-use,high-productivity biological drug manufacturing

$639M

+27%

12

12

2023

5-year CAGR

M&A Deals

Disruptive

Revenue

2018-2023

since 2016

technology

launches

+21%

4

13%

5-year avg.

Distinct

revenue from new

base growth

franchises

products*

2019-2023

Challenging

Industry-leading

Selective portfolio

*2021-2023

year in bioprocessing

growth

expansion

Commercial revenue mix

Tailwind for

future growth

Business highlights 2023

2

10

>50%

18%

40%

Strategic

New Product

Opportunity

New Modalities

Reduction in GHG

Acquisitions

Launches

Funnel Growth

% of Total Revenue

Emissions Intensity*

FlexBiosys

XCell® ATF LS

Advanced systems

Including mRNA, cell

Published 2nd

Metenova

Controllers

strategy (integration)

therapy, gene therapy

Sustainability

Additions to our fluid

KrosFlo® RPM Systems

Commercial focus on

Report

management portfolio

Self-Contained

key accounts

TangenX® Devices

All figures above are approximate. * 2022 greenhouse gas (GHG) figure, compared to 2020

Our Markets

Antibody market (mAbs/Bispecifics/ADCs and Biosimilars)

>$175B

>170

>1,000

Market 2022

U.S. FDA

Phase I-III1

Monoclonal

Growing at

approvals

>2,500

Antibodies

>10% annually

(originators)

Active clinical trials1

>$8B

39

5

Market 2022

U.S. FDA

Blockbuster mAbs

approvals

coming off-patent

Biosimilars

Growing at

2024-2026, representing

across 11

>20% annually

>$30B

originators

in 2022 originator

sales

Repligen is

well positioned

  • Leader in upstream process intensification
  • Addressing downstream challenges with systems, advanced analytics and single-use products

FDA approvals in 2023

12 originator +

5 biosimilars

Approvals off to strong

start in 2024

5 originator +

7 biosimilars

1.The Antibody Society: Antibodies to watch in 2023; Company filings/guidance

(at July 31)

Approvals: Approval numbers as of 7/31/24 U.S. FDA website; Repligen internal tracker

Growth: Market research reports (Allied Market Research, etc.)

8

New modalities market (Cell, Gene Therapy, mRNA)

>$7B

25

>800

Market 2022

U.S. FDA

Phase I-III2

Cell

, Gene and RNA

Revenue growth

approvals:

>3,000

projections

14 Gene

1

Therapies

>20%

11 Cell

Active clinical trials2

2024-2030

Highest number of U.S.

approvals in 2023

New C> approvals

anticipated through 2024 3

(3 approved at July 31)

RGEN New Modalities Revenue New Modality Revenue Mix 2023

~28%

$116M

10%

3-yr. CAGR

$54M

15%

39%

36%

2020

2023

AAV mRNA

Lenti/CAR-T Other

Repligen gaining share

  • Upstream process intensification
  • Customers scaling; esp. Filtration and Chromatography
  • 18% of 2023 revenue
  • 25 accounts >$1M each

1Cell therapy excludes non-gene modified cell therapy; 2ASGCT Q3 2023 Quarterly Data Report; 3CVS Health, Gene Therapy report Q42023-Q42027; Company filings/guidance Approvals:

9

Approval numbers as of 5/6/24 U.S. FDA website; Repligen internal tracker; Growth: Market research reports (Grandview, ASCGT); *2023 C> revenue estimate as of Oct. 31, 2023

Expanding addressable market now $12B; $20B total market

PROCESS ANALYTICS

Our market share: ~4%

Our 3-year CAGR: ~20%

CHROMATOGRAPHY

Our market share ~13%

$950M

Our 3-year CAGR: >20%

PROTEINS & RESINS

$2.1B

Our market share: ~5%

Our 3-year CAGR: ~7%

$1.4B

FILTRATION incl. FLUID MANAGEMENT

Our market share: ~5%

Our 3-year CAGR: ~25%

$12B

$7.6B

Repligen Market Share 2023

TAM

~5% TAM

3-Year Revenue CAGR

(2020-2023)

Repligen 20%

Delivering above industry-average growth, creating new markets, taking share

: This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document

Repligen Corporation published this content on 15 August 2024 and is solely responsible for the information contained therein. Distributed by Public , unedited and unaltered, on 15 August 2024 17:24:03 UTC .

Latest news about Repligen Corporation

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Chart Repligen Corporation

Chart Repligen Corporation

Company Profile

Logo Repligen Corporation

Income Statement and Estimates

Analysts' consensus, quarterly earnings, rate of surprise.

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Nvidia q2 earnings preview: will the momentum hold up.

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PARAGUAY - 2024/07/18: In this photo illustration, the Nvidia Corporation logo is displayed on a ... [+] smartphone screen. (Photo Illustration by Jaque Silva/SOPA Images/LightRocket via Getty Images)

Nvidia (NASDAQ: NVDA) is expected to publish its Q2 FY’25 results on August 28. We expect the company to have another solid quarter, as Nvidia’s high-end graphics processing chips, which are currently the gold standard for running generative AI workloads, see strong demand. We expect Nvidia’s revenue for the quarter to come in at $28.55 billion, roughly in line with consensus estimates and 2.1x last year’s number. We expect earnings to come in at roughly $0.64 per share, marginally ahead of consensus estimates and up from $0.27 in last year’s quarter. So what should investors look forward to as Nvidia reports its Q2 FY’25 earnings? See our analysis of Nvidia Earnings Preview for a closer look.

Nvidia’s data center business is likely to remain the primary driver of the company’s earnings for the quarter, led by the Hopper GPU computing platform and the InfiniBand end-to-end networking solutions as customers across various industries have been investing in training and interfacing generative AI and large language models. While cloud players have been the biggest customers of AI chips, demand has been expanding to consumer internet players, enterprise players, and healthcare customers, according to Nvidia. Over Q1 FY’25, sales from Nvidia’s data center segment surged to $22.6 billion, rising almost 5x year-over-year. Supply for Nvidia’s Hopper products is also improving, and this is likely to help sales over Q2. We will be looking for updates on the company’s next-generation Blackwell chips. While the chips were slated to launch around October this year, a report by The Information indicated that the chips could be delayed due to a recently discovered design flaw.

Nvidia is also becoming extremely profitable due to the AI surge. Net income over Q1 rose to $14.881 billion up 7x year-over-year. Things could remain strong over Q2 as well, as Nvidia benefits from favorable component costs and better scale. For Q2, Nvidia is guiding for adjusted gross margins of around 75.5%, plus or minus 50 basis points. Nvidia could also benefit from a more favorable product mix skewed toward complex data center products and higher software-related sales.

NVDA stock has seen extremely strong gains of 710% from levels of $13 in early January 2021 to around $105 now, vs. an increase of about 40% for the S&P 500 over this roughly 3-year period. However, the increase in NVDA stock has been far from consistent. Returns for the stock were 125% in 2021, -50% in 2022, and 239% in 2023. In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, and 24% in 2023 - indicating that NVDA underperformed the S&P in 2022.

In fact, consistently beating the S&P 500 - in good times and bad - has been difficult over recent years for individual stocks; for other heavyweights in the Information Technology sector including AAPL, MSFT, and ORCL, and even for the mega-cap stars GOOG, TSLA, and AMZN.

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In contrast, the Trefis High Quality Portfolio , with a collection of 30 stocks, has outperformed the S&P 500 each year over the same period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics . Given the current uncertain macroeconomic environment with high oil prices and elevated interest rates, could NVDA face a similar situation as it did in 2022 and underperform the S&P over the next 12 months - or will it see a strong jump?

Looking at Nvidia’s current market price of $105 per share, the stock now trades at about 38x consensus FY’25 earnings and 28x FY’26 earnings. This is not an unreasonable multiple, considering Nvidia’s heady growth. That said, there are risks as well. Firstly, the big surge in GPU demand that we are currently seeing could potentially ease, as the initial training phase of AI large language models slows down. After the training of models, the phase of utilizing these models could shift toward lower-power requirements, or potentially even on-device capabilities, reducing demand growth for GPUs. Competition is also mounting. Players such as AMD are investing considerably to catch up in this space given the high stakes. We value NVDA stock at $89 per share, about 15% below the current market price. See our analysis on Nvidia Valuation : Is NVDA Stock Expensive Or Cheap? for more details on what’s driving our price estimate for NVDA stock.

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Caterpillar Stock Quote

The company is exceeding its own expectations in 2024.

Long-term investors in Caterpillar ( CAT 2.38% ) already know it's a cyclical company whose revenue and profit margins bounce around with its end markets. That knowledge won't stop traders from trying to guess the timing of the cycle. That's fair enough, but longer-term investors will want to focus on the key things that can change Caterpillar's long-term value, so here's a look at one of them.

Caterpillar's cyclical revenue, margins, and earnings

First, a graphical depiction of Caterpillar's cyclical revenue is useful. Note that its operating profit margin tends to follow revenue, leading to wild swings in its profits. When construction, mining, energy, and transportation spending on machinery is booming in response to strong construction activity, relatively high mining commodity and energy prices, and transportation spending, Caterpillar's profits boom; and they slump when these markets reverse.

CAT Revenue (TTM) Chart

CAT Revenue (TTM) data by YCharts

Most investors know this, and the following points should be noted:

  • Acknowledging the cyclicality, management's guidance includes a variety of outcomes for revenue and margins.
  • Just as investors shouldn't price in a valuation for Caterpillar based on peak earnings, they shouldn't do so for trough earnings; a balanced approach is needed.

Caterpillar's cyclical guidance

Management gave a range of operating margins as a function of revenue in its Investor Day presentation in 2022, and it also said that free cash flow ( FCF ) generation through the cycle would range between $4 billion and $8 billion.

Fast forward to the fourth quarter of 2023 and management saw fit to raise the high end of the margin ranges by 100 basis points (100 basis points equals 1%). The new ranges are shown below. In addition, management raised its estimate for FCF through the cycle to between $5 billion and $10 billion.

Adjusted operating profit margin

10%-14%

12%-16%

14%-18%

16%-20%

18%-22%

Data source: Caterpillar presentations.

Management's 2024 guidance

Caterpillar's recent results were mixed. Management now expects revenue to be slightly lower than the $67 billion reported in 2023 but "adjusted operating profit margin to be above the top end of the target range."

Consequently, Wall Street analysts are assuming $66 billion in revenue for 2024. Now, let's crunch some numbers to see the significance of the margin ranges and the abovementioned changes. As you can see below, the Wall Street consensus (in line with management's latest guidance) implies a profit that's 19% above the profit implied in the midpoint of the guidance on the investor day in 2022.

The increase in operating margin matters, and if Caterpillar can maintain this momentum, its management could raise its expectations for margins and FCF throughout the cycle.

Midpoint of 2022 investor day guidance

$11.6 billion

0

Midpoint of fourth-quarter 2023 update

$12.1 billion

4.3%

Top of fourth-quarter 2023 update

$13.5 billion

16.4%

Wall Street analyst consensus

$13.8 billion

19%

Data source: Caterpillar presentations, calculations by author.

To illustrate how this might impact valuations, consider FCF (a function of profit and profit margins). One way to avoid the dangers of using peak or trough earnings or cash flow is to price Caterpillar at the midpoint of its FCF guidance. In this case, it's the midpoint of $5 billion to $10 billion, or $7.5 billion. Using a multiple of, say, 20 times FCF gives a target market cap of $150 billion, 6% below the current market cap.

However, Caterpillar's margin and FCF expectations could rise over time, leading to a valuation expansion and upside for the stock.

Construction machinery.

Image source: Getty Images.

Are Caterpillar's margin and free-cash-flow generation rising?

As already noted, this is a down year for sales, but margins are coming in above the target range given in the fourth quarter of 2023. One reason for this comes down to the fantastic job Caterpillar is doing with price realization in terms of operating profit. This represents the incremental profit generated by raising the price of the same product and is distinct from the incremental profit from selling more products at the same price (sales volume).

The chart below shows how price realization offset sales volume declines in terms of profits even as overall sales turned negative.

Sales growth

17%

22%

12%

3%

0%

(4%)

Price realization

$1,894 million

$1,422 million

$1,298 million

$982 million

$575 million

$578 million

Sales volume

$192 million

$803 million

$212 million

($260 million)

($268 million)

($431 million)

To be clear, management expects "flattish price realization in the third quarter versus the prior year due to" improved product availability. Still, the outlook for margins to exceed the high end of the range illustrates how strong price realization has been this year.

However, given the startling performance on pricing and how that translates to improved margin and cash flow performance, It's possible Caterpillar could be seeing a structural improvement in margins, which could lead to an upside for the stock.

Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .

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