Nvidia Reports Stronger-Than-Expected Quarterly Results

NVIDIA Corporation (NASDAQ: NVDA) reported its first quarter financial results after the market close on Thursday. Despite declining revenues, Nvidia surpassed analysts’ estimates, sending shares 6% higher during extended trading hours.

For the quarter, Nvidia reported earnings of USD 0.88 per share on revenue of USD 2.22 Billion. FactSet analysts expected earnings of USD 0.81 per share on revenue of USD 2.20 Billion.

Nvidia mentioned that revenue fell by 31% year-over-year compared to revenue of USD 3.20 Billion the same quarter last year. The weakness in revenue was primarily led by the decline within Nvidia’s gaming segment. In addition, major declines within its Data Center and OEM segments also contributed to the revenue loss.

Moreover, Nvidia said that the decline was largely due to a loss of revenue from its graphic processing units for mining cryptocurrencies and the performance in gaming and data center markets.

Nvidia’s Gaming unit, which accounts for the majority of the Company’s revenue, was USD 1.05 Billion for the quarter. Gaming revenue steeply declined from USD 1.72 Billion the same quarter last year. Data center revenue was USD 634 Million, falling from USD 701 Million last year.

Professional Visualization revenue was USD 266 Million, increasing from USD 251 Million year-over-year. Auto revenue was USD 166 Million, slightly increasing from USD 145 Million the same quarter last year. Meanwhile, OEM & Other segment reported revenue of USD 99 Million, plunging from USD 387 Million last year.

For the next quarter, Nvidia expects revenue to be USD 2.55 Billion, plus or minus 2%. FactSet analysts estimated revenue of USD 2.54 Billion.

“Our Q2 outlook is somewhat lower than our expectation earlier in the quarter, when our outlook for fiscal 2020 revenue was flat to down slightly from fiscal 2019,” Nvidia’s Chief Financial Officer, Colette Kress, told analysts on a Thursday conference call. “The Data Center spending pause around the world will likely persist in the second quarter and visibility remains low.”

Nvidia did not provide a full year guidance due a CPU shortage, which is affecting the Company’s initial ramp of its laptop business. Despite Nvidia not providing its full year guidance, shares remained stable leading into Friday morning.

4 Comments
  1. Matt Ruggiero 5 months ago
    Reply

    Settled for all out $162.50 limit order on $NVDA. Such a shame I wasn’t home to take a post market partial up at $170 last night.

  2. Tim Collins 5 months ago
    Reply

    if $NVDA can trade above $163.50, I think buyers can pick up some momentum.

  3. Vanessa Louie 5 months ago
    Reply

    $NVDA premiums demolished… Buying some calls here, too cheap.

    • Nathan Michaud 5 months ago
      Reply

      $NVDA what a disaster today. Glad I didn’t trade at all.
      Day trading this one requires some skill

Leave a Reply to Vanessa Louie Cancel reply