Jensen Huang, CEO of Nvidia Corp.
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Chipmaker Nvidia saw stocks rise as much as 7% on Thursday after reporting better than expected first-quarter earnings of fiscal 2020.
Here are the key figures:
- Earnings: ] 88 cents per share, excluding certain items, against 81 cents per share as expected by analysts, according to Refinitiv.
- Revenue: $ 2.22 billion, against $ 2.20 billion as expected by analysts, according to Refinitiv. 1
The downturn in the first quarter is due to the $ 289 million "absence" of revenue from graphics processing units for mining cryptographic baskets, as well as gaming and data center market performance, Nvidia said.
Net income in the quarter excluding certain goods fell to $ 543 million, or 88 cents per share, from $ 1.29 billion, or 2.05 per share.
With regard to guidance, Nvidia requires sales of $ 2.55 billion, plus or minus 2% fiscal second quarter, implying a decline of 18.3% from year to year. Analysts surveyed by Refinitiv were looking for $ 2.54 billion in fiscal quarterly revenues.
Kevin Cassidy from Stifel wrote in a report on Monday that Nvidia was likely to remove channel stocks in the quarter for its graphics game processing units. Revenues in the Nvidia gaming industry will fall 14% throughout the 2020 fiscal year, "due to a challenging beginning of the year and increasing competitive pressures", Cassidy wrote.
Nvidia said the gaming segment had left the quarter with $ 1.06 billion in revenue, down 39% year-on-year, but above the consensus between $ 933.5 million among analysts asked by FactSet.
The company's data center business segment had sales of $ 634 million, less than the $ 663.7 million FactSet consensus estimate.
Professional visualization business contributed $ 266 million in revenue, lower than the $ 290 million estimate, while Automotive came in just under $ 164 million in revenue, at $ 166 million.
Nvidia's share is up 20 percent since the beginning of the year, but remains around 45 percent of record highs reached in October.
In March, Nvidia announced its intention to purchase Israeli network hardware company Mellanox for nearly $ 7 billion to help boost its data center business.
Managers will discuss the results with analysts at a conference call at 5:30 pm Østtid.
This is breaking news. Please check back for updates.
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