The 10-second takeaway
For the quarter ended July 29 (Q2), NVIDIA beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins dropped, net margins shrank.
NVIDIA recorded revenue of $1.04 billion. The 32 analysts polled by S&P Capital IQ looked for revenue of $1.01 billion on the same basis. GAAP reported sales were 2.7% higher than the prior-year quarter's $1.02 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The 22 earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share. GAAP EPS of $0.19 for Q2 were 24% lower than the prior-year quarter's $0.25 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.8%, 10 basis points better than the prior-year quarter. Operating margin was 13.4%, 450 basis points worse than the prior-year quarter. Net margin was 11.4%, 350 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.18 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $4.41 billion. The average EPS estimate is $0.95.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,313 members out of 5,548 rating the stock outperform, and 235 members rating it underperform. Among 1,163 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,123 give NVIDIA a green thumbs-up, and 40 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVIDIA is outperform, with an average price target of $16.12.
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