Nvidia earnings Q4 2018

Earnings


Nvidia shares jumped more than 14 percent Thursday after the company reported better-than-expected earnings for the fiscal fourth quarter. After the earnings call ended the stock was more than 9 percent higher than the closing price of $217.52 per share.

The after-market rally more than made up for Nvidia’s 4.9 percent drop in regular trading, as the broad market swoon brought down 97 percent of stocks in the S&P 500.

  • Earnings: $1.78 per share, vs. $1.17 per share as expected by analysts, according to Thomson Reuters.
  • Revenue: $2.91 billion, vs. $2.69 billion as expected by analysts, according to Thomson Reuters.

Revenue for the quarter jumped 34 percent from a year earlier, and Nvidia’s revenue of the full fiscal year of $9.71 billion was up 41 percent, according to a statement.

Nvidia exceeded analysts’ expectations in four of its five markets. The biggest category, gaming, produced $1.74 billion in revenue, above the FactSet estimate of $1.54 billion, according to StreetAccount. The second largest area, data center, came up with $606 million in revenue, above the consensus estimate of $552.1 million.

Cryptocurrency demand contributed to sales growth for Nvidia’s Pascal-generation graphics processing units for gaming, the company said, and it was indeed above Nvidia’s expectations, CFO Colette Kress said on a conference call with analysts after the earnings release.

Kress said sales of the Nintendo Switch gaming console contributed to Nvidia’s growth in the quarter. Nvidia’s Tegra processor revenue, which totaled $450 million, was up 75 percent year over year.

Nvidia said it’s expecting $2.9 billion in revenue, plus or minus 2 percent, for the first quarter of its 2019 fiscal year. Analysts were expecting guidance of $2.46 billion in revenue for the quarter.

Nvidia said it had a benefit of $133 million in the quarter as a result of recently enacted U.S. tax reform. The company expects to have a tax rate of 12 percent, plus or minus 1 percentage point, for the quarter. That’s down from around 17 percent previously, Kress said.

In the fourth quarter, Nvidia introduced the Titan V graphics processing unit for desktop PCs, and it also changed the licensing terms for some of its GPUs.

Correction: A previous version of this story misstated the result of the tax change. Nvidia recorded a benefit tied to tax reform.



Source link

Products You May Like

Articles You May Like

Big tax breaks to lure Amazon’s HQ2 won’t pay off
Fees could sink your retirement savings. Here’s what to do about it
Companies should take a stand on gun control
Spring can offer ski travel bargains — if you avoid spring break
Hackers hijack Tesla’s cloud system to mine cryptocurrency: RedLock

Leave a Reply

Your email address will not be published. Required fields are marked *