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Nvidia Corp. (NVDA) Fourth Quarter Results Out – EPS Beats Expectation by Almost Double

Written By Info-Pc on Thursday, February 13, 2014 | 1:17 PM

Nvidia Corp. (NVDA) Fourth Quarter Results Out – EPS Beats Expectation by Almost Double


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 Corporation (NASDAQ: NVDA) just recently outed its Q4 Results for 2014. The reported non-GAAP diluted EPS of $0.32 is an almost full double of the analyst’s estimate of $0.18 (+ $0.14). Jen-Hsun Huang, CEO of Green attributed the results to the PC Gaming Sector which has been responsible for an ‘outstanding year’ for GPU Sales. The Gaming PC Market is shifting to the Mid – High end spectrum while PC sales in general have seen a Year By Year Decline.

Nvidia Corporation (NVDA) Earnings Per Share 14 Cents more than Analysts Expectation – GPU Sales, GRID Computing and Tegra K1 Attributed with the Success

Nvidia Corporation (NVDA)Ok lets start with a little overview. Geforce GTX GPU sale increased by nearly 50% this year. The Tesla K40 the highest end niche product was also launched. Denver was demonstrated and Tegra K1 targeted the auto industry. However operating costs increased and with the Tegra K1 no longer an ace up its sleeve, it remains to be seen how Green will fare.
I will be going through the Non-GAAP Result and the GAAP Result with Q1 2015 Guidance at the end. Nvidia (NASDAQ: NVDA) has repurchased stock worth of 37 Million Dollars and payed a Dividend roughly equal to 48 Million Dollars. Green is set to pay its next Quarterly Cash Dividend on the 20th of March 2014 to all shareholders as of Feb 27. Revenue for the fiscal year of 2014 was 4.13 Billion Dollars. GAAP Earnings Per Diluted Share were $0.74 while Non-GAAP Earnings Per Diluted Share were $0.99 (for FY14). The following results are given for both Q/Q and Y/Y analysis.

Nvidia (NVDA) GAAP Fourth Quarter FY14 Results

  • Revenue in Q4 FY14 was 1.144 Billion Dollars. Revenue has gone up by 9% since last quarter (Q3 FY14) and has gone up 3% Year by Year (Q4 FY13). We have seen a healthy growth Q/Q and a more or less Flat Growth Y/Y.
  • Gross Margin: Nvidia (NASDAQ: NVDA) had a gross margin of 54.1% this Quarter. This has gone down 130 Basis Points Quarter over Quarter The Gross margin of Q4 FY13 was 52.9% and has gone up 120 BPS this Quarter.
  • Net Income: Net Income this Quarter was 147 Million Dollars. This has gone up 24% since last quarter (Q3 FY14) and gone down 16% Year Over Year.
  • Operating Expenses: Q4 FY14 saw operating expenses worth 452 Million Dollars for Nvidia (NASDAQ: NVDA). This is up 2% from last Quarter and up 13% Year over Year.

Nvidia (NVDA) Non-GAAP Fourth Quarter FY14 Results

  • Revenue [Same as GAAP]
  • Gross Margin: Nvidia (NASDAQ: NVDA) had a gross margin of 53.8% this Quarter. This has gone down 190 Basis Points Quarter over Quarter The Gross margin of Q4 FY13 was 53.2% and has gone up 60 BPS this Quarter.
  • Net Income: Net Income this Quarter was 187 Million Dollars. This has gone up 22% since last quarter (Q3 FY14) and gone down 13% Year Over Year.
  • Operating Expenses: Q4 FY14 had operating expenses worth 408 Million Dollars for Nvidia (NASDAQ: NVDA). This is up 1% from last Quarter and up 13% Year over Year.

Outlook and Verdict

Nvidia (NASDAQ: NVDA) has a forecasted revenue of 1.05 Billion next quarter (Q1 FY15). Operating expenses are expected to increase next quarter and Capital Expenditure is expected to be 45 Million dollar for Next Quarter. For Long term holders the status is currently at “Hold Stock” with no tilt. The NASDAQ Rating is at Hold Stock with a Tilt to Buy
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