NVIDIA (NASDAQ: NVDA) reported Q1 EPS of $1.80, $0.12 better than the analyst estimate of $1.68. Revenue for the quarter came in at $3.08 billion versus the consensus estimate of $2.98 billion.

GUIDANCE:

NVIDIA sees Q2 2021 revenue of $3.65 billion at mid-point, versus the consensus of $3.15 billion.

• Revenue is expected to be $3.65 billion, plus or minus 2 percent. Mellanox is expected to contribute a low-teens percentage of combined second quarter revenue.
• GAAP and non-GAAP gross margins are expected to be 58.6 percent and 66.0 percent, respectively, plus or minus 50 basis points. The sequential decline in GAAP gross margins primarily reflects an increase in acquisition-related costs, most of which are non-recurring in nature.
• GAAP and non-GAAP operating expenses are expected to be approximately $1.52 billion and $1.04 billion, respectively. The sequential change in GAAP operating expenses reflects an increase in stock-based compensation and acquisition-related costs. GAAP and non-GAAP operating expenses for the full year, which will include Mellanox starting with the second quarter, are expected at approximately $5.7 billion and $4.1 billion, respectively.
• GAAP and non-GAAP other income and expense are expected to be an expense of approximately $50 million and $45 million, respectively.
• GAAP and non-GAAP tax rates are both expected to be 9 percent, plus or minus 1 percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which are expected to generate variability on a quarter by quarter basis.

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