Earnings Review and Free Research Report: NVIDIA Reported Record Breaking Quarter; Revenue Soared 56% and EPS Rocketed 124%
Research Desk Line-up: Lattice Semiconductor Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 21, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on NVIDIA Corp. (NASDAQ: NVDA), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NVDA, following the Company's release of its second quarter fiscal 2018 operating results on August 09, 2017. The Graphics chip maker smashed passed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Semiconductor-Specialized industry. Pro-TD has currently selected Lattice Semiconductor Corporation (NASDAQ: LSCC) for due-diligence and potential coverage as the Company announced on August 07, 2017, its financial results for Q2 FY17 which ended on July 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on Lattice Semiconductor when we publish it.
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NVIDIA reported record revenue of $2.23 billion for the second quarter ended July 30, 2017, up 56% compared to revenue of $1.43 billion in Q2 FY17. The Company's revenue growth was driven by GPUs for gaming, data center, and professional visualization, as well as Tegra® processors. NVIDIA's revenue numbers topped analysts' expectations of $1.96 billion.
For Q2 FY18, NVIDIA's GAAP gross margin was 58.4% and non-GAAP gross margin was 58.6%. The Company's GAAP operating income was $688 million in the reported quarter, up 117% on a y-o-y basis, while non-GAAP operating income soared 102% to $773 million.
NVIDIA's GAAP net income was $583 million and earnings per diluted share were $0.92 for Q2 FY18, up 123% and 124%, respectively. The Company's non-GAAP net income was $638 million and earnings per diluted share were $1.01, up 104% and 91%, respectively, compared to the year ago period fueled by strong revenue growth and improved gross and operating margins. NVIDIA's earnings zoom past Wall Street's expectations for $0.70 per share.
During Q2 FY18, NVIDIA's GPU business revenue surged 59% to $1.90 billion, led by strength across all platforms, including data center, gaming, and professional visualization platforms, along with PC OEM sales.
The Company's Datacenter (including Tesla®, NVIDIA GRID™, and DGX™) revenue was a record $416 million, up 175% on a y-o-y basis. This data center revenue reflects initial shipments of NVIDIA's newest Volta GPU architecture and V100 platform. Datacenter growth was fueled by strong demand by hyper scale and cloud customers for deep learning training and accelerated GPU computing, as well as demand for HPC, DGX AI supercomputing, and GRID virtualization platforms.
For the reported quarter, NVIDIA's professional visualization revenue grew 10% on a y-o-y basis to a record $235 million, led by high-end mobile platforms. The Company's Tegra Processor business revenue, which included gaming development platforms and services, was $333 million, up 101% on a y-o-y basis. NVIDIA also reported record automotive revenue of $142 million, which was up 19% on a y-o-y basis, incorporating infotainment modules, production DRIVE PX platforms, and development agreements for self-driving cars.
NVIDIA's cash, cash equivalents, and marketable securities at the end of Q2 FY18 were $5.88 billion compared with $6.21 billion at the end of the prior quarter.
The Company's accounts receivable at the end of the reported quarter was $1.21 billion compared with $976 million in the prior quarter. Days Sales Outstanding (DSO) at quarter-end was 49 days, up from 46 days in Q1 FY18. NVIDIA's inventory at the end of Q2 FY18 was $855 million, up from $821 million in the prior quarter.
During Q2 FY18, NVIDIA generated cash flow from operating activities of $705 million, up from $282 million in Q1 FY18. The sequential increase was primarily due to growth in net income and strong collections of accounts receivable and other changes in working capital. The Company's free cash flow was $650 million in the reported quarter compared with $229 million in the previous quarter.
During H1 FY18, NVIDIA paid $758 million in share repurchases and $166 million in cash dividends. The Company will pay its next quarterly cash dividend of $0.14 per share on September 18, 2017, to all shareholders of record on August 24, 2017. For FY18, NVIDIA intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases.
For Q3 FY18, NVIDIA is forecasting revenue to be $2.35 billion, plus or minus 2%. The Company is estimating GAAP and non-GAAP gross margins to be 58.6% and 58.8%, respectively, plus or minus 50 basis points. The Company is projecting capital expenditures to be approximately $65 million to $75 million.
At the closing bell, on Friday, August 18, 2017, NVIDIA's stock slightly rose 0.02%, ending the trading session at $161.50. A total volume of 14.98 million shares have exchanged hands. The Company's stock price skyrocketed 18.75% in the last three months, 50.61% in the past six months, and 160.06% in the previous twelve months. Moreover, the stock soared 51.30% since the start of the year. The stock is trading at a PE ratio of 46.24 and has a dividend yield of 0.35%. The stock currently has a market cap of $96.07 billion.
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