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Graphic Chips maker NVidia reported better than expected first quarter earnings and revenue after the close Thursday. $NVDA data center business reported over $1 billion in revenue for the first time. The cloud, to the edge, where GPU-accelerated 5G, AI and IoT will revolutionize the world’s largest industries.

NVidia GeoForce 

NVIDIA Corporation NASDAQ: NVDA: Report Earnings After Close Thursday

 $1.80 Beat $1.69 EPS AND $3.08 Beat $3.00 billion forecast in revenue

Earnings 

NVidia reported fiscal first quarter earnings after the close Thursday with Adjusted profit of $1.80 per share from $0.88 per share last year. Net earnings more than doubled to $1.47 per share from $0.64 per share in the first quarter of 2020. The bottom-line also topped the Street view. Revenue rose 39% annually to $3.08 billion and came in above the market’s prediction.

Wall Street had anticipated adjusted earnings per share of $1.69 on revenue of $3 billion, according to Refinitiv consensus estimates. Last year during its first fiscal quarter, Nvidia reported adjusted earnings per share of $0.88 on revenue of $2.22 billion. However, it’s difficult to compare reported earnings to analyst estimates as the coronavirus pandemic continues to affect global economies and makes earnings impact difficult to assess.The management also provided guidance for the second quarter of 2021.

Nvidia’s fiscal calendar, the quarter ended on April 26, over a month after widespread lockdowns in the United States and other countries started.

 

NVIDIA Corporation NASDAQ: NVDA

Market Reaction $360.09 +9.08 (+2.59%) Hit New Record High $363.72

Highlights

“COVID-19 created challenges in supply and demand. Early in the quarter, our partners’ supply chains were disrupted. Shelter-in-place resulted in closure of retail outlets and China iCafes, affecting sales of our gaming products,” the company said in a letter from the CFO. “However, work from home, learn at home, and gaming drove a surge in e-tail demand.”.

  • Its gaming segment was up 25% year-over-year to $1.9 billion
  • Fastest growing segment is related to its chips for data centers, which are used for computationally intensive tasks, such as machine learning. Nvidia said that segment grew 80% year-over-year, topping $1 billion for the first time with revenue of $1.14 billion.
  • The company also said that it said it closed the acquisition of Mellanox in April, which will also help Nvidia’s data center business.
  • “Gaming and workstation growth areNvidia expects to report about $3.65 billion in revenue in its second fiscal quarter with gross margins around 58.6%. directly tied to competitive products and the need to work, govern and school from home,” Patrick Moorhead, president and principal at Moor Insights & Strategy, said..

Nvidia Q1 2021 Earnings

NVDA Data Q1 2021

NVDA Gaming Q1 2021

Outlook

  • Nvidia expects to report about $3.65 billion in revenue in its second fiscal quarter with gross margins around 58.6%. 13Q2 FY2021 OUTLOOKRevenue–$3.65 billion, plus or minus two percent Includes a full quarter of Mellanox revenueAutomotive expected to decline about 40% q/qGross Margin–58.6% GAAP and 66.0% non-GAAP, plus or minus 50 basis pointsOperating Expense–$1.52 billion GAAP and $1.04 billion non-GAAPFY2021 operating expense –approx. $5.7 billion GAAP and $4.1 billion non-GAAP, including 3 quarters of MellanoxOther Income & Expenses–net loss of $50 million GAAP and $45 million non-GAAPTax Rate–GAAP and non-GAAP both approx. 9%Capital Expenditure–approximately $225 to $250 million
  • Nvidia said on Thursday that it is evaluating the “timing” of its share repurchase program and that it will continue to pay dividends.

Source: NVidia, AlphaStreet

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