Nvidia Reports First Quarter Earnings And Beats Estimates

Chipmaker Nvidia reported its first quarter financial report after the bell on Thursday and beat estimates.
Revenue at $2.22 billion was a decrease of 31% anually but was higher than the $2.2 billion expected. GAAP EPS of
$0.64 and non-GAAP EPS of $0.88 were both higher than the $0.58 and $0.81 expected respectively.

Looking ahead, Nvidia has projected July quarter revenue of $2.55 billion, plus or minus 2%. The pre-earnings consensus was for $2.54 billion.

“Our Q2 outlook is somewhat lower than our expectation earlier in the quarter, when our outlook for fiscal 2020 revenue was flat to down slightly from fiscal 2019,” Nvidia’s chief financial officer, Colette Kress remarked.
“The Data Center spending pause around the world will likely persist in the second quarter and visibility remains low.”

Kress also said, “A CPU shortage, while improving, will affect the initial ramp of our laptop business.” She said Nvidia would not be providing full fiscal year guidance.

“Going forward, we will probably reach normalized levels for gaming, somewhere between Q2 and Q3, similar to our discussion that we had back at Analyst Day, at the beginning of the quarter,” she said.

“While demand from some hyperscale customers bounced back nicely, others paused or cut back,” Kress als commented.

“Despite the uneven demand backdrop, the quarter had significant positives.”

The company’s Professional Visualization business contributed $266 million in revenue, lower than the $290 million estimate, while Automotive came in barely bigger than the $164 million revenue estimate, at $166 million.
Shares of the stock were up 2% in after-hours trading on Thursday and jumped as much as 6%. Nvidia has seen gains of 20% so far this year.

Disclaimer: We have no position in NVIDIA Corporation (NASDAQ: NVDA) and have not been compensated for this article.