Here are the Drivers You Must-Know from NVIDIA Earnings

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NVIDIA Corporation (NASDAQ:NVDA) posted lower net income in the first quarter compared with a year-earlier period. However, investors love what they see and are pushing the stock up over 9% pre-market.

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NVIDIA Earnings Cheat Sheet for the First Quarter

Results: Net income for the semi-general fell to $60.4 million (10 cents per share) vs. $135.2 million (22 cents per share) a year earlier. This is a decline of 55.3% from the year-earlier quarter.

Revenue: Fell 3.9% to $924.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: NVIDIA Corporation reported adjusted net income of 16 cents per share. By that measure, the company beat the mean estimate of 10 cents per share. Analysts were expecting revenue of $915.7 million.

Quoting Management: “Kepler GPUs are accelerating our business,” said Jen-Hsun Huang, president and chief executive officer of NVIDIA. “Our newly launched desktop products are winning some of the best reviews we’ve ever had. Notebook GPUs had a record quarter. And Tegra is on a growth track again, driven by great mobile device wins and the upcoming Windows on ARM launch. “Graphics is more important than ever. Look for exciting news next week at the GPU Technology Conference as we reveal new ways that the GPU will enhance mobile and cloud computing,” he said.

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 2 cents in the fourth quarter of the last fiscal year, by 3 cents in the third quarter of the last fiscal year, and by one cent in the second quarter of the last fiscal year.

Last quarter’s year-over-year revenue decrease ends a three-quater streak of revenue increases. Revenue rose 7.5% in the fourth quarter of the last fiscal year, 26.3%in the third quarter of the last fiscal year and 25.3% in the second quarter of the last fiscal year.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 21 cents per share to 14 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 92 cents a share to 68 cents over the last ninety days.

Competitors to Watch: Advanced Micro Devices, Inc., Intel Corporation, Texas Instruments Inc., Broadcom Corporation, QUALCOMM, Inc., Microsoft Corporation, Silicon Image, Inc., Pixelworks, Inc., Marvell Tech. Group Ltd., and ARM Holdings plc.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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