Nvidia shares rise on Q3 Financial Results

Nvidia Corp. (NASDAQ: NVDA) released its third quarter earnings for fiscal year 2018 and beat analysts’ estimates sending shares up 4.7 percent shortly after open on Friday morning.

Nvidia reported its record high revenue for the third quarter of $2.64 billion, increasing 32 percent year over year, and beating Thomson Reuters analysts’ estimates of $2.36 billion. The company reported an EPS of $1.33, up 32 percent year over year, and beating Thomson Reuters analysts’ estimates of $0.83.

Nvidia’s Datacenter had a strong quarter, reporting revenue of $501, increasing over 100 percent year over year. The company announced that Alibaba, Baidu, and Tencent will adopt its NVIDIA Volta GPUs for accelerating AI within its own businesses and its consumer platforms. The companies now join Amazon, Facebook, Google, and Microsoft.

“Industries across the world are accelerating their adoption of AI.” said Jensen Huang, founder and CEO of NVIDIA.

“I think this is just the beginning of it all," Huang said on the earnings call, referring to the Datacenter growth.

Even with the Datacenter’s strong annual growth, Nvidia’s gaming segment drew in $1.56 billion for the quarter, now up 20 percent year over year. The gaming segment accounted for more than half of company’s third quarter revenue.

Nvidia expects a slightly higher revenue for the fourth quarter of $2.65 billion, plus or minus 2 percent. Thomson Reuters analysts’ estimate a revenue of $2.44 billion.

For fiscal year 2019, Nvidia intends to return $1.25 billion to shareholders through cash dividends and share repurchases. The company announced a 7 percent increase in its quarterly cash dividend to $0.15 per share from $0.14 per share.

Shares have now rose 217 percent year over year, establishing its position as one of the best performers in the S&P 500.

Leave a Comment