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NVIDIA's third quarter net income of $3 billion fell 27% year on year  (2019/11/18 13:51:09)
NVIDIA's third quarter net income of $3 billion fell 27% year on year
2019-11-15 label: financial report semiconductor source: Sina Technology

NVIDIA today announced its third quarter results for fy2020. According to the report, NVIDIA's revenue in the third quarter was US $3.014 billion, down 5% from US $3.181 billion in the same period of last year; its net profit was US $899 million, down 27% from US $1.230 billion in the same period of last year.

NVIDIA's third quarter results fell short of what Wall Street analysts had expected, and its fourth quarter outlook for fy2020 also fell short of expectations, resulting in its share price plummeting by more than 16% after hours.


Key results in the third quarter:

In the quarter ended October 27, NVIDIA's net profit was $899 million, down 27% from $1230 million in the same period of last year, up 63% from $552 million in the previous quarter; diluted earnings per share was $1.45, down 26% from $197 in the same period of last year, up 61% from $0.90 in the previous quarter.

Excluding some one-time items (not in accordance with the US GAAP), NVIDIA's net profit in the third quarter was $1.103 billion, down 4% from $1.151 billion in the same period of last year, up 45% from $762 million in the previous quarter; diluted earnings per share was $1.78, down 3% from $1.84 in the same period of last year, up 44% from $1.24 in the previous quarter. 1. The performance exceeded analysts' expectations. According to data provided by Yahoo Finance Channel, 28 analysts had expected NVIDIA's earnings per share to reach $1.57 in the third quarter on average.

NVIDIA's third quarter revenue was $3.014 billion, down 5% from $3.181 billion in the same period last year, and up 17% from $2.579 billion in the previous quarter, which also exceeded analysts' expectations. According to data provided by Yahoo Finance Channel, 32 analysts had expected NVIDIA's revenue to reach $2.91 billion in the third quarter on average.

NVIDIA's third quarter gross margin was 63.6%, up 320 basis points from 60.4% in the same period last year and 380 basis points from 59.8% in the previous quarter. Contrary to US GAAP, NVIDIA's gross profit margin in the third quarter was 64.1%, up 310 basis points from 61.0% in the same period of last year, and 400 basis points from 60.1% in the previous quarter.

NVIDIA's third quarter operating expenses were $989 million, up 15% from $863 million a year earlier and 2% from $970 million in the previous quarter. Among them, R & D expenditure was $712 million, up from $605 million in the same period of last year; sales, general and administrative expenditure was $277 million, up from $258 million in the same period of last year.

Contrary to the US GAAP, NVIDIA's operating expenses in the third quarter were $774 million, up 6% from $730 million in the same period last year and 3% from $749 million in the previous quarter.

NVIDIA's third quarter operating profit was $927 million, down 12% from $1058 million in the same period last year and 62% higher than $571 million in the previous quarter. Not in accordance with US GAAP, NVIDIA's operating profit in the third quarter was US $1.156 billion, down 4% from US $1.21 billion in the same period of last year and up 44% from US $802 million in the previous quarter.

NVIDIA announced a quarterly cash dividend of $0.16 per share to all registered shareholders as of November 29, 2019 on December 20, 2019.

Performance Outlook:

NVIDIA expects revenue to reach $2.95 billion in the fourth quarter of fy2020, up or down 2%, less than analysts had expected. According to data provided by Yahoo Finance Channel, 31 analysts had expected NVIDIA's fourth quarter revenue to reach US $3.06 billion on average.

NVIDIA also expects that in the fourth quarter of fy2020, the company's gross profit rate in accordance with and not in accordance with GAAP is expected to reach 64.1% and 64.5% respectively, with a fluctuation of 50 basis points; operating expenses in accordance with and not in accordance with GAAP are expected to reach about $1.02 billion and $805 million respectively; other income in accordance with and not in accordance with GAAP is expected to reach 2 About $5 million; tax rates in accordance with and not in accordance with us gaap are expected to be 9%, up and down by 1%.

Change in share price:

On the same day, NVIDIA shares closed up $1.22, or 0.58%, at $209.79 in regular NASDAQ trading. In the subsequent after hours trading up to 4:40 p.m. EDT on the 14th (5:40 a.m. Beijing time on the 15th), NVIDIA's shares rose another $1.94 to $211.73, or 0.92%, close to the 52 week high. In the past 52 weeks, NVIDIA's highest price was $211.86 and its lowest was $206.53.

 
 
 

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