Revenue grows by 5% YoY
On August 6, 2015, NVIDIA (NVDA) announced its 2Q16 results for the quarter ending April 30, 2015. It reported revenue of $1.15 billion. It beat analysts’ estimates of $1.01 billion. The revenue grew 5% YoY (year-over-year) compared to revenue of $1.10 billion for 2Q15. The EPS (earnings per share) was $0.34—compared to estimates of $0.21. Due to NVIDIA’s impressive results, the stock rose by 8.75% on August 6, 2015, in the after-hours trading session.
The semiconductor stock has beaten estimates despite global weakening of the PC (personal computer) market. The revenue was largely driven by gaming and automotive revenue growth.
NVIDIA’s CEO, Jen-Hsun Huang stated that “Our strong performance in a challenging environment reflects NVIDIA’s success in creating specialized visual computing platforms targeted at important growth market. Visual computing continues to grow in importance, making our growth opportunities more exciting than ever.”
The firm provided investors and other stakeholders with the 3Q16 outlook. It forecasts revenue to be ~$1.18 billion higher than the consensus estimates of $1.1 billion. The gross margin for 3Q16 is expected to be around 56.50%—compared to 56.60% in 2Q16. The firm also stated that it’s currently working with more than 50 companies encouraging the use of NVIDIA Drive PX in order to increase revenue growth in the automotive segment.