Nvidia Shares Rally Despite Turbulent Fourth Quarter



Nvidia reported its financial results for the fourth-quarter ended January 27, 2019 on Thursday, ending “a turbulent close to what had been a great year,” as described by the company’s Chief Jensen Huang in the earnings statement.

The graphics processing unit maker had issued a profit warning a few weeks ago citing weakening macroeconomic conditions, particularly in China. NVDA stock gained $12.67, or 8.20% to $167.20 per share in the extended trading session. The stock ended the regular session with a gain of 1.1% to $154.53.

NVDA Earnings & Earnings

Earnings per diluted share for the quarter came to $0.92, down 53% from $1.97 in the third-quarter, and down 48% from $1.78 in the same period last year. Nvidia posted fourth-quarter revenue of $2.21 billion, down 31% from $3.18 billion in the third-quarter, and down 24% from $2.91 billion in the earlier-year period.

Analysts surveyed by Refinitiv had called for fourth-quarter revenue of $2.20 billion. The company generated revenues of $954 billion from its gaming business, below Refinitiv consensus of $1.21 billion. Data Center business segment brought in revenues of $679 million in revenue, also below the $839 million that analysts were expecting.

Automotive segment accounted for $163 million of the company’s total revenue, missing estimates of $181 million revenue. Intellectual property and original equipment manufacturers posted revenue of $124 million, below expectations of $116 million, while revenue from professional visualization business was $293 million, also below estimates of $314 million.

Looking ahead, the company said that it expects fiscal 2020 first-quarter revenue to be between $2.16 billion and $2.24 billion, while analysts model Q1 2020 revenue of $2.32 billion.


“This was a turbulent close to what had been a great year,” said Jensen Huang, founder and CEO of NVIDIA. “The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing0 quarter.”

“Despite this setback, NVIDIA’s fundamental position and the markets we serve are strong. The accelerated computing platform we pioneered is central to some of world’s most important and fastest growing industries – from artificial intelligence to autonomous vehicles to robotics. We fully expect to return to sustained growth,” he said.

NVIDIA Corp Profile

NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the Graphics Processing Unit (GPU) and Tegra Processor segments. The GPU segment comprises of product brands which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users.

The and Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices. The company was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA. – CNN Money