NVIDIA Corporation (NASDAQ: NVDA), the Santa Clara, California-based technology company engaged in creating the graphics chips used in personal computers, today reported better-than-expected first-quarter revenue. NVDA’s outlook also beat Street expectations, sending shares sharply higher in trading today.
NVDA shares rose to an intra-day high of $13.68 in trading today before finishing the day 6.36% higher at $13.21 on above average volume of 35.84 million.
NVIDIA reported robust demand for its newly introduced chips for desktop computers and contract wins for its Tegra smartphone chips. However, the company noted that its revenue and profit is still being limited by supply constrains and global economic slowdown.
Back in February, NVDA had given very low expectations for first-quarter revenue due to the supply constraints issues. Michael McConnell, analyst at Pacific Crest, said that there were a lot of fears going into the call that supply constraints would continue to be an issue. McConnell noted that it was not as bad as feared.
For the first quarter, NVIDIA reported revenue of $924.9 million, compared with $962 million reported for the same period in the previous year. Analysts were expecting NVDA to report revenue of $916 million for the first quarter. Net income for the first quarter came in at $60.4 million, or $0.10 per share, compared with $135.2 million, or $0.22 per share reported for the same period in the previous year.
For the second quarter, NVDA expects revenue to come in between $990 million and $1.05 billion, compared with Street estimates of $876.2 million. Second-quarter gross margin is expected to come in between 50.2% and 52.2%. For the first quarter, NVDA reported gross margin of 50.1%.
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