NVIDIA Earnings Cheat Sheet: Profit Swings Up and Beats Street Expectations

S&P 500 (NYSE:SPY) component NVIDIA Corporation (NASDAQ:NVDA) climbed to a profit in the second quarter on lower costs. NVIDIA Corporation provides visual computing technologies that generate interactive graphics for computers, mobile devices and gaming consoles.

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

NVIDIA Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $151 (25 cents per diluted share) in the quarter. NVIDIA Corporation had a net loss of $141 million or a loss 25 cents per share in the year earlier quarter.

Revenue: Rose 25.7% to $1.02 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NVDA reported adjusted net income of 32 cents per share. By that measure, the company beat the mean estimate of 25 cents per share. Analysts were expecting revenue of $1.01 billion.

Quoting Management: “We grew solidly this quarter,” said Jen-Hsun Huang, NVIDIA president and chief executive officer. “Consumer demand for notebooks powered by our GeForce GPU, with its unique Optimus technology, resulted in record revenue for these products.

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by one cent in the third quarter of the last fiscal year.

A year-over-year revenue increase last quarter snaps a streak of three consecutive quarters of revenue declines. Revenue fell 4% in the first quarter, 9.8% in the fourth quarter of the last fiscal year and 6.6% in the third quarter of the last fiscal year.

Gross margins grew 35.3 percentage points to 51.8%. The growth appeared to be driven by falling costs, as the figure fell 27.4% from the year earlier while revenue rose 25.7%.

Competitors to Watch: Advanced Micro Devices, Inc. (NYSE:AMD), Intel Corporation (NASDAQ:INTC), Texas Instruments Inc. (NYSE:TXN), Broadcom Corporation (NASDAQ:BRCM), QUALCOMM, Inc. (NASDAQ:QCOM), Microsoft Corporation (NASDAQ:MSFT), Silicon Image, Inc. (NASDAQ:SIMG), Pixelworks, Inc. (NASDAQ:PXLW), Marvell Tech. Group Ltd. (NASDAQ:MRVL), and ARM Holdings plc (NASDAQ:ARMH).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)