[ad_1]
NVIDIA (NASDAQ: NVDA) released its second quarter results for fiscal year 2020 after market close on Thursday. The graphics processor unit (GPU) business turnover decreased 17% to $ 2.58 billion and earnings per share (EPS) adjusted for non-recurring items declined 36% to 1, $ 24.
As for the last two quarters, the results were mediocre from one year to the next, but this was expected. However, there is a half-full story: the top and bottom lines have risen sequentially and adjusted EPS easily beat the modest estimate of the Wall Street consensus at 1.14 USD.
Given this story, it is not surprising that NVIDIA shares jumped 7.3% on Friday. In 2019, the stock posted a return of 19.8% S & P 500The yield of 16.7%, but it is still under the water of about 38% over the past year, while the wider market has yielded nearly 5% over this period.
"Yes!" From this player This action mimics the market's reaction to NVIDIA's second quarter results. Source of the image: Getty Images.
The key numbers
|
Metric |
T2 2020 |
Q2 2019 |
Change |
|---|---|---|---|
|
Returned |
$ 2.58 billion |
$ 3.12 billion |
(17%) |
|
GAAP operating income |
$ 571 million | $ 1.16 billion | (51%) |
|
GAAP net income |
$ 552 million | $ 1.10 billion | (50%) |
|
Earnings per share (EPS) under GAAP |
$ 0.90 | $ 1.76 | (49%) |
|
EPS adjusted |
$ 1.24 | $ 1.94 | (36%) |
Data Source: NVIDIA. GAAP = generally accepted accounting principles.
Results rebounded well over last quarter, with sequential revenues and adjusted EPS growth of 16% and 41%, respectively.
Gross margin under GAAP was 59.8%, down from 63.3% in the same quarter last year, but up from 58.4% in the quarter. previous. Adjusted gross margin was 60.1%, down from 63.5% for the same period last year, but up from 59% in the prior quarter.
trends
Platform performance
|
Platform |
T2 tax revenue for 2020 |
Change (YOY) |
Change (QOQ) |
|---|---|---|---|
|
Thu |
$ 1.31 billion |
(27%) |
24% |
|
Data center |
$ 655 million |
(14%) |
3% |
|
Professional visualization |
$ 291 million |
4% |
9% |
|
automobile |
$ 209 million |
30% |
26% |
|
OEM and IP * |
$ 111 million |
(4%) | 12% |
|
Total |
$ 2.58 billion |
(17%) |
16% |
Data Source: NVIDIA. * OEM and IP = manufacturer of original equipment and intellectual property; not a target market platform. YOY = from one year to the next. QOQ = quarter over quarter.
Related Articles
Games are up, while the data center has remained stable compared to last quarter
NVIDIA's two largest platforms still generate significantly less revenue than a year ago. But the good news is that both saw sequential gains, with games up 24% from the previous quarter. The seasonality of the game is quite varied, so it is important to also review the changes from one year to the next. Things are also up on this front, as the 27% drop from one year to the other this quarter is less than the 39% drop in the first quarter, which was less marked than 45% of the previous quarter. dive for more than a year.
Gaming's sequential growth drivers included the second quarter launches of the GeForce RTX Super GPU lineup for desktop and RTX studio notebooks for creators, as well as the "ramp for production of the two new Game console models Nintendo Switch ", CFO Colette Kress says on the earnings call.
The 3% sequential increase in the data center "is due to the growth of the company's revenue, driven by the expansion of the IA [artificial intelligence] work, "said Kress in a commentary issued by the finance director. The decline in the platform's revenue reflects a very high drop in sales, as demand remains moderate, with customers taking a cautious approach due to worries over the slowdown in the global economy.
Pro viz and auto continue to be the dynamic duo
NVIDIA's two smaller platforms saw their revenues grow both year-over-year and, on the other hand, auto, with double-digit growth on both fronts.
In the call for results, Kress said that "auto growth" reflected the growing adoption of new generation AI cockpit solutions and autonomous vehicle development projects, including a particularly important development services transaction recognized during the quarter ".
As for Pro viz, she said that "growth of one year on the other and sequentially was driven by record earnings for mobile workstations with a high demand for new thin and light form factors ". The company's launch of RTX ray tracing last year has yielded convincing results.
Update pending the acquisition of Mellanox
Waiting Mellanox (NASDAQ: MLNX) acquisition, Kress said: "[W]We have received regulatory approval from the United States and are working with regulators in Europe and China. The approval process is progressing as planned and we are continuing our efforts to conclude the agreement by the end of this calendar year. "
Mellanox, based in Israel and Silicon Valley, is a provider of intelligent interconnection solutions and services for servers and storage. In March, NVIDIA announced this all-cash transaction of $ 6.9 billion.
Looking forward to
NVIDIA seems to have recovered its game – at least in games. After two consecutive quarters of sequential revenue growth, it seems safe to say that its largest platform in terms of revenue has returned to growth mode. With regard to the data center, which had experienced the fastest growth of the business until this recent crisis, the worst seems to have passed. That said, the revenue from this platform is growing by only 3%, it may be a bit premature to make this statement.
In the third quarter, NVIDIA posted revenue of $ 2.9 billion, plus or minus 2%. At mid-year, this represents a year-over-year decrease of 8.8%, but an increase of 12.4% compared to the quarter just announced. Wall Street was forecasting a turnover of $ 2.97 billion for the third quarter. NVIDIA's revenue prospects are therefore a little enlightened.
[ad_2]
Source link