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Graphic Chips maker NVidia beat earnings and revenue expectations for second quarter earnings. $NVDA revenue fell 17% y/y in the quarter, gaming, it's biggest segment had $1.31 billion in revenue, down 27%. The stock rose 7% on the beat.

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NVIDIA Corporation NASDAQ: NVDA: Reported Earnings After Close Thursday

$1.24 Beat $1.15 EPS AND $2.58 billion Beat $2.54 billion forecast in revenue


Nvidia reported better-than-expected fiscal-second quarter earnings of $1.24 per share, excluding certain items, vs. $1.15 per share as expected by analysts, according to Refinitiv. Revenue was $2.58 billion, vs. $2.54 billion as expected by analysts, according to Refinitiv.

Jensen Huang, CEO of Nvidia, said, “We achieved sequential growth across our platforms. Real-time ray tracing is the most important graphics innovation in a decade. Adoption has reached a tipping point, with NVIDIA RTX leading the way.”


Market Reaction - After Hours $156.40 +$7.63 (+5.13%)

“While sales for internal hyperscale use were muted, the engineering focus on AI is growing,” Nvidia’s chief financial officer, Colette Kress, said on a conference call with analysts on Thursday.


  • Nvidia’s biggest segment, gaming, produced $1.31 billion in venue, down 27% on an annualized basis and just above the $1.30 billion consensus estimate among analysts surveyed by FactSet.
  • Nvidia saw fewer shipments of graphics cards for desktop PCs and system-on-chip components for gaming systems.
  • The data center segment came in with $655 million in revenue, down 14% on an annualized basis and less than the $668.5 million FactSet consensus.
  • Nvidia cited a decline in revenue from “hyperscale” customers like cloud infrastructure providers.

NVIDIA Corp. Q2 2020 earnings results

Dividends and Buybacks

The company said it will pay the next quarterly cash dividend of $0.16 per share on September 20, 2019, to all shareholders of record on August 29, 2019.

It will resume repurchasing stocks after the completion of the recently announced acquisition of Mellanox Technologies, which is the first priority as far as capital spending is concerned. The regulatory approval process for the transaction is progressing as planned. It is expected to close by the end of this calendar year.


With respect to guidance, Nvidia says that in the fiscal third quarter it expects $2.90 billion in revenue, plus or minus 2%. That’s below the $2.97 billion consensus estimate among analysts polled by Refinitiv.

Nvidia said it estimates gross margin in the fiscal third quarter to be 62.5%, plus or minus 50 basis points; analysts polled by FactSet had been looking for 60.2%.


Wedbush Securities

In a Tuesday note Matt Bryson of Wedbush Securities told clients that there are reasons to be optimistic about a return to normalcy in the second half of 2019. He pointed to pickup of Nintendo products containing Nvidia components and the introduction of the Nintendo Switch Lite console.

“Our meeting with [PC maker] Maingear indicated NVDA continues to dominate the high end/custom PC GPU market and is holding share vs. AMD, ” wrote Bryson, who has an outperform rating on Nvidia stock.

Source: NVidia, AlphaStreet

From The TradersCommunity News Desk

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