NVIDIA (NVDA) Q1 Earnings & Revenues Top Estimates, Grow Y/Y
Zacks Investment Research | May 11, 2018 04:14AM ET
Maintaining its earnings streak for the 12th straight quarter, NVIDIA Corporation (NASDAQ:NVDA) reported splendid first-quarter fiscal 2019 results, wherein it not only marked strong year-over-year improvement but also trumped the Zacks Consensus Estimate. The company's results also beat estimates on all fronts.
Despite this, shares of NVIDIA lost nearly 3% in after-hour trade as the company foresees decelerated demand for crypto-specific GPUs in the quarters ahead, making investors slightly cautious.
The company provided crypto-specific revenues data from the first time which came in at $289 million. However, for the current quarter, it predicts revenues from this business to take a hit and be about one-third of the first-quarter level.
Let’s now discuss the quarterly report.
Revenues
Revenues not only surged 66% year over year to $3.21 billion but also comfortably surpassed the Zacks Consensus Estimate of $2.91 billion as well as management’s projection of $2.90 billion (+/-2%). The year-over-year improvement was primarily backed by growth across all platforms — GPUs for gaming, Professional Visualization, datacenter and Tegra automotive. Further, NVIDIA continued to gain traction in the artificial intelligence (AI) space which proved conducive to quarterly revenues.
Revenues at the GPU business jumped 77% year over year to $2.77 billion on strength in GeForce GPUs for Gaming and datacenter. Strong demand for cryptocurrencies stemmed from increased adoption of Bitcoin and latest digital currencies like Ethereum also helped bump up demand for GPU, thereby driving GPU sales. Moreover, the Nintendo (OTC:NTDOY) Switch, which was launched in March 2017, contributed to overall growth.
Tegra processor revenues totaled $442 million, up 33% on a year-over-year basis. The increase was primarily buoyed by better-than-expected growth in Tegra development services.
Revenues at Gaming GPU were up 68% on a year-over-year basis to $1.72 billion on the back of demand across all regions and form factors.
The company’s continued focus on introducing fast and innovative products as well as agreements with leading PC game makers has been driving the Gaming GPU business. During the reported quarter, NVIDIA unveiled real-time ray tracing technology, NVIDIA RTX which is likely to take gaming experience to a whole new level. Hence, the product launch will help NVIDIA expand its customer base and in turn drive additional revenues.
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NVIDIA has a Zacks Rank #3 (Hold). You can see Zacks Investment Research
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