The 10-second takeaway
For the quarter ended Jan. 29 (Q4), NVIDIA met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share shrank significantly.
Gross margins improved, operating margins dropped, and net margins contracted.
NVIDIA notched revenue of $953.2 million. The 27 analysts polled by S&P Capital IQ foresaw revenue of $950.2 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $886.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.26. The 16 earnings estimates compiled by S&P Capital IQ anticipated $0.24 per share on the same basis. GAAP EPS of $0.19 for Q4 were 32% lower than the prior-year quarter's $0.28 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 52.2%, 410 basis points better than the prior-year quarter. Operating margin was 13.6%, 30 basis points worse than the prior-year quarter. Net margin was 12.2%, 720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $923.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $4.14 billion. The average EPS estimate is $0.93.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,214 members out of 5,436 rating the stock outperform, and 222 members rating it underperform. Among 1,368 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,339 give NVIDIA a green thumbs-up, and 29 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVIDIA is hold, with an average price target of $16.04.
New mobile devices are changing the game, and potential profitability, at many semiconductor companies. Some will fail, some will tread water, and those in the right devices will shine. Where does NVIDIA fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add NVIDIA to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of NVIDIA. Motley Fool newsletter services have also recommended writing puts in NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.