Nvidia Reports Fourth Quarter Financial Results

Nvidia Corporation (NASDAQ: NVDA) reported its fourth quarter financial results after market close on Thursday. The chipmaker surpassed estimates in both revenue and earnings, causing shares to surge as high as 8% during extended trading hours.

For the quarter, Nvidia reported earnings of USD 80 cents per share on revenue of USD 2.21 Billion. Refinitiv analysts expected earnings of USD 75 cents per share on revenue of USD 2.20 Billion.

Despite the beat, Nvidia reported that its quarterly revenue declined by 24% year-over-year. Earnings per share also fell, declining by 53% the same quarter a year ago. However, Nvidia was still able to report a record full-year revenue of USD 11.72 Billion, up 21% a year prior.

“This was a turbulent close to what had been a great year,” said Jensen Huang, founder and Chief Executive Officer of NVIDIA. “The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter.

Nvidia highlighted that its stronger full-year revenue was driven by its record revenue in its gaming, datacenter, professional visualization, and automotive units.

“Despite this setback, NVIDIA’s fundamental position and the markets we serve are strong. The accelerated computing platform we pioneered is central to some of world’s most important and fastest growing industries – from artificial intelligence to autonomous vehicles to robotics. We fully expect to return to sustained growth,” added Huang.

Nvidia’s shares plunged by 17% in late January after the Company slashed its guidance for the quarter. Nvidia noted that its gaming and datacenter revenue were below its expectations, reflecting overall weaker sales.

The Company also highlighted that declining macroeconomic conditions, especially in China, impacted its consumer demand for Nvidia gaming GPUs. In addition, sales of certain high-end GPUs using Nvidia’s new Turing architecture were also lower than expected.

Fourth quarter gaming revenue fell by 45% year-over-year to USD 954 Million. Analysts were projecting revenue of USD 974.1 Million.

Data-center revenue rose by 12% to USD 679 Million, above expectations of USD 670.5 Million. Professional visualization sales increased by 15% to USD 293 Million and automotive revenue jumped by 23% to USD 163 Million. Meanwhile, OEM and IP revenue fell by 36% to USD 116 Million.

As for Nvidia’s first quarter of 2020, the Company expects revenue to be approximately USD 2.20 Billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 58.8% and 59%, respectively, plus or minus 50 basis points. GAAP and non-GAAP other income and expense are both expected to be income of approximately USD 20 Million.

Nvidia shares are now up 15.75% this year, however, shares are still down 35.9% year-over-year.

5 Comments
  1. Carlin Rosa 4 months ago
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    Emotional roller coaster on $NVDA today. Long thrice. The bottom reversal got me smoked when it broke 157. Though my instinct told me it was going to squeeze. Stopped out only to see it going back to Vwap

    • Ryan Mallory 4 months ago
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      $NVDA shorting puts easy profits here. Hedge with verticals. Happy trading

    • Marc Slans 4 months ago
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      Right, so we know what the stock can do going forward. The fundamentals will ultimately tell the tale. And $NVDA looks pretty well positioned, I think, in several growing and soon-to-be enormous markets. They’ll surely have to get back to executing at a very high level, though…

  2. James Cuff 4 months ago
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    Ruminating on the $nvda / #crypto inventory / channel saturation stories this morning and I’m personally reminded of the eighties and “Atari Shock”.

    • Lenny Kibe 4 months ago
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      As Wall Street debates whether Nvidia $NVDA can make good on its promise for a major second-half sales rebound, a couple of recent developments bode well for its ability to do so.

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