The 10-second takeaway
For the quarter ended Oct. 28 (Q3), NVIDIA beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share grew.
Margins expanded across the board.
NVIDIA reported revenue of $1.20 billion. The 33 analysts polled by S&P Capital IQ predicted revenue of $1.19 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $1.07 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 $0.39. The 19 earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS of $0.33 for Q3 were 14% higher than the prior-year quarter's $0.29 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 52.9%, 70 basis points better than the prior-year quarter. Operating margin was 20.9%, 180 basis points better than the prior-year quarter. Net margin was 17.4%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.20 billion. On the bottom line, the average EPS estimate is $0.36.
Next year's average estimate for revenue is $4.36 billion. The average EPS estimate is $1.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,323 members out of 5,552 rating the stock outperform, and 229 members rating it underperform. Among 1,118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,083 give NVIDIA a green thumbs-up, and 35 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 $16.69.
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