NVIDIA Corp. (NASDAQ: NVDA) released its financial results last week. The company has earned fourth quarter revenues of $2.17 billion, indicating an increase of 55% from the same period in 2015. Compared to the previous quarter, the increase has been rated at 8%. The earnings for the previous quarter were estimated to be $2 billion.
The GAAP earning were at $0.99 for each diluted share, which indicates an increase of 183% from previous year’s earnings. Compared to the previous quarter, the increase was estimated to be at 19%. As for non-GAAP earnings per diluted share, the numbers were at $1.13 per share, indicating an increase of $0.52 from the previous year and $0.94 compared to the previous quarter.
For the fiscal year of 2017, revenues touched a record-setting $6.29 billion, showing an increase of 38% compared to the previous fiscal year. GAAP earnings were at $2.57 per dilutes share, showing an increase of 138%. Non-GAAP earnings per share were at $3.06, indicating a growth rate of 83%.
According to Jen-Hsun Huang, CEO and Founder of NVIDIA, the company experienced a good finish to the year and consistent growth across all business areas. He also mentioned that the firm’s GPU computing platform had benefited from rapid adoption in areas such as self-driving technology, gaming, cloud computing, and AI.
NVIDIA GPUs come with what is known as “deep learning”, which is said to be a breakthrough as far as AI is concerned. This technology is helping overcome challenges associated with autonomous vehicles, weather prediction and cancer detection.
The company believes that this will help its GPU Learning Platform radically change the way various industries, such as transportation and healthcare, function.
NVIDIA had paid $739 million in fiscal 2017 towards share repurchases and $261 towards cash dividends. This allowed the firm to return an aggregate of $1 billion towards shareholders in the same fiscal year.
For the next fiscal year, the company aims to return around $1.25 billion via share repurchases and continued quarterly cash dividends.
The next quarterly cash dividend will be paid by NVIDIA on the 17th of March, 2017. The figure is estimated to be $0.14 per share. The dividend will be paid to all shareholders recorded on February 24th, 2017.
Expectations for 2018
In 2018, NVIDIA expects revenues to reach $1.90 billion, with a reduction or addition by 2%. The company expects non-GAAP and GAAP margins to touch 59.7% and 59.5%, respectively.