Manufacturer of graphics solutions — Nvidia reported revenues for the first quarter, according to CNBC. On the background of the report, shares fell more than 1% after the close of the session, before decreasing by 2%.
Key indicators:
adjusted EPS is $1.80,revenue was $3.08 billion.
In the annual comparison revenues increased by 39% in consistent — declined by percent. Wall street was expecting adjusted earnings per share will be $1,69 on revenue of $3 billion according to analysts polled Refinitiv. However, it is difficult to compare the declared income with the analytical estimates, as the pandemic coronavirus continues to have an impact on the world economy and makes it difficult to assess the impact of income.
representatives of the company noted failures in the supply chain partners early in the quarter and problems in the field of supply and demand. Quarantine measures have led to the closure of retail outlets, which affected sales of gaming products. However, as the Treasurer of the company, the work and the homeschooling and the increasing consumption of game content has led to a sharp increase in demand for the products of the company.
last year in I financial quarter Nvidia reported adjusted earnings per share of $of 0.88 on revenue of $2.22 billion. In the second fiscal quarter Nvidia expects to receive approximately $3,65 billion in revenue with a gross profit of about 58.6 per cent.
Nvidia is most known for the production of graphics processors. The gaming segment of the company grew by 25 percent annually and reached revenue of $1.9 billion, said in a statement. In a sequential comparison, revenues decreased by 10% due to seasonal factors.
But the fastest-growing segment of the company is associated with chips for data centers that are used for the solution of compute-intensive tasks such as computer training.
In this examplethe implementation of the revenue for the year increased 80% to $1.14 billion, the first time exceeded $1 billion. The company also announced that in April closed the deal to acquire Mellanox, which will also help the business Deliver Nvidia. It is expected that in the second quarter, Mellanox will provide up to 11-12% of total revenue of Nvidia .
In a sequential comparison of revenue per server has grown by 18%. Such dynamics have contributed to the increased demand in vertically integrated industries and on the part of cloud providers. This division now accounts for over one-third of the total revenue of the vendor and it is expected that the server components in the second quarter to increase its stake in total income, including the inclusion of Mellanox revenues in the same article.
In the reports Nvidia divided the product types for Graphics and Compute & Networking. The first category includes gaming GPUs, revenue from service NOW GeForce and professional Quadro solutions, GRID and automotive systems. Revenue direction is increased to $1,906 billion. Compute & Networking reflects revenue from data centers, systems of artificial intelligence and supercomputers. During the reporting period the business achieved revenue growth of 69% to $1,174 billion.
sales of professional graphics solutions increased by 15% compared to the same period a year earlier to $307 million. Growing demand for mobile and desktop workstations, although consistent comparison is better made mobile.
proceeds from the sale of solutions for laptops, which the company considers in the article “OEM and Other” grew by 39% yoy to $138 million. A large demand for discrete graphics solutions for entry-level laptops. In a sequential comparison, revenues decreased by 9%
shares of Nvidia for the year increased by more than 50%, while the S&P 500 fell more than 8%.
Nvidia said Thursday that it is evaluating the timing of the buyback shares and continuing to pay dividends.