NVIDIA Earnings: Higher-Than-Expected Net Income

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S&P 500 (NYSE:SPY) component NVIDIA Corporation (NASDAQ:NVDA) reported net income above Wall Street’s expectations for the third quarter. NVIDIA provides visual computing technologies that generate interactive graphics for computers, mobile devices, and gaming consoles.

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NVIDIA Corporation Earnings Cheat Sheet

Results: Net income for NVIDIA Corporation rose to $209.1 million (33 cents per share) vs. $178.3 million (29 cents per share) in the same quarter a year earlier. This marks a rise of 17.3% from the year-earlier quarter.

Revenue: Rose 12.9% to $1.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: NVIDIA Corporation reported adjusted net income of 39 cents per share. By that measure, the company beat the mean estimate of 30 cents per share. It beat the average revenue estimate of $915.7 million.

Quoting Management: “Investments in our new growth strategies paid off this quarter in record revenues and margins,” said Jen-Hsun Huang, president and chief executive officer of NVIDIA. “Kepler GPUs are winning across the special-purpose PC markets we serve, from gaming to design to supercomputing. And Tegra is powering some of the most innovative tablets, phones and cars in the market.” He continued: “We are pleased to start paying our shareholders a quarterly cash dividend. We have confidence in our businesses and our continued ability to grow. Given our strong financial position and ongoing ability to generate cash, we are well positioned to continue investing in our future.”

Key Stats:

Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 21.5% from the year earlier, while the figure dropped 55.3% in the first quarter and 32.4% in the fourth quarter of the last fiscal year.

The company has beaten estiamtes for two quarters in a row. In the second quarter, it topped expectations with net income of 20 cents versus a mean estimate of net income of 15 cents per share.

The company’s revenue has now risen for two straight quarters. In the second quarter, revenue increased 2.7% to $1.04 billion from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 26 cents a share to 30 cents over the last ninety days. Over the past three months, the average estimate for the fiscal year has climbed from 76 cents per to share to 89 cents.

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

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