The 10-second takeaway
For the quarter ended April 29 (Q1), NVIDIA met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins dropped across the board.
NVIDIA chalked up revenue of $924.9 million. The 30 analysts polled by S&P Capital IQ predicted a top line of $916.5 million on the same basis. GAAP reported sales were 3.9% lower than the prior-year quarter's $962.0 million.
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 $0.16. The 17 earnings estimates compiled by S&P Capital IQ forecast $0.16 per share. GAAP EPS of $0.10 for Q1 were 55% lower than the prior-year quarter's $0.22 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 50.1%, 30 basis points worse than the prior-year quarter. Operating margin was 7.9%, 820 basis points worse than the prior-year quarter. Net margin was 6.5%, 760 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $979.4 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $4.11 billion. The average EPS estimate is $0.90.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,256 members out of 5,478 rating the stock outperform, and 223 members rating it underperform. Among 1,192 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,161 give NVIDIA a green thumbs-up, and 31 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 $16.68.
Is NVIDIA the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-dollar 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 recommended writing puts on 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.