Nvidia Corp. (NVDA) Announced First Quarter Fiscal Results – Beats EPS Expectations By Almost Double, GPU Sales Save the Day

Usman Pirzada
Posted May 10, 2014
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Disclaimer: The Conclusion given at the end has been given in a completely non-professional capacity. Though the Guidance has been given to the best of my abilities we cannot be held liable in any way whatsoever. Nvidia’s (NASDAQ: NVDA) first quarter fiscal results are out and they have reported an EPS of $0.29 they have successfully beaten analysts expectations of $0.17 (+$0.12) cents which is approximately double. The PC Market is under continuous allegations of being on a generally downward trend but despite of the bearish market, Green managed to pull through. However, the announcement saw some shorts pulling out in an early stock dip.

Nvidia Corporation (NVDA) Q1 FY15 Financial Results are Out – Beats Expectation by 12 Cents, General Growth Despite Bearish PC Market attributed to GPU Sales

NVIDIA Corporation 5th May to 8th May Stock PriceNvidia (NASDAQ: NVDA) has seen some impressive sales figures in all its departments this quarter but none of them come close to the sales of the GPUs which account for 81% of the entire Revenue this quarter. However even though GTX sales saw an increase of 14% Y/Y they went down 4% sequentially. On the other hand the Tegra SoC Division accounted for 12.6% of revenue and grew 6% sequentially and 35% yearly, which is very decent growth. The reason for the same is attributed to the increased demand from the automotive industry (+60% Y/Y) and smartphone Industry (partial decline). GRID Computing and Tesla Sales remained strong due to VDI Deployments and an assortment of streaming gaming providers. However the fact remains that both the Tegra and GPU Division accounted for  93.6% of the entire revenue of the business. The increased demand for Maxwell (28m) i.e. the GTX 750 and GTX 750 Ti is attributed to the sales while the notebook sector saw a slight decline in demand. Here is the financial summary of the quarterly:

Nvidia (NVDA) GAAP First Quarter FY15 Results

  • Revenue in Q1 FY15 was 1.103 Billion Dollars. Revenue has gone down by 4% since last quarter (Q4 FY14) and has gone up 16% Year by Year (Q1 FY14). Seasonality accounts for the decline in revenue Q/Q while we see healthy growth Y/Y.
  • Gross Margin: Nvidia (NASDAQ: NVDA) had a gross margin of 54.8% this Quarter. This has gone down 70 Basis Points Quarter over Quarter. The Gross margin of Q1 FY14 was 54.3% and has gone up 50 BPS.
  • Net Income: Net Income this Quarter was $137 Million Dollars. This has gone down 7% since last quarter (Q4 FY14) and gone up a massive 75% Year Over Year. After accounting for seasonality we see a very bullish trend in the Y/Y increase in Net Income.
  • Operating Expenses: Q1 FY15 saw operating expenses worth 453 Million Dollars for Nvidia (NASDAQ: NVDA). This remained flat sequentially and up 4% Year over Year.
Nvidia Corporation (NASDAQ: NVDA) Reports A Strong Second Quarter for FY17 - Beats Analysts' Expectation by 16 Cents with EPS of $0.53 and $1.43 Billion in Record Revenue

Nvidia (NVDA) Non-GAAP First Quarter FY15 Results

  • Revenue [Same as GAAP]
  • Gross Margin: Nvidia (NASDAQ: NVDA) had a gross margin of 55.1% this Quarter. This has gone up 130 Basis Points Quarter over Quarter. The Gross margin of Q1 FY14 was 54.6% and has gone up 50 BPS Yearly.
  • Net Income: Net Income this Quarter was 166 Million Dollars. This has gone down 11 % since last quarter (Q4 FY14) and gone up 46% Year Over Year.
  • Operating Expenses: Q1 FY15 had operating expenses worth 411 Million Dollars for Nvidia (NASDAQ: NVDA). This is up 1% from last Quarter and up 4% Year over Year.

Outlook (for Q2 FY15) and Verdict:

A more or less flat growth is expected from Nvidia (NASDAQ: NVDA) and the company should remain profitable through the next quarter. Shorts have already pulled out so now is the perfect time for buying stock if you plan to stay long. However 20nm Maxwell is not really expected soon, so Green will have to step up their game to beat the analysts expectation this time. The Nasdaq rating is at hold stock with tilt to buy.

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