Nvidia shows worse than expected financial results
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Nvidia's shares fell as much as 19 percent yesterday, after the company reported earnings for the third quarter of its 2019 fiscal year, which ended Oct. 28.
Nvidia publishes its financial results
Nvidia has had earnings of $ 1.84 per share, excluding certain items, compared to $ 1.71 per share as expected by analysts, according to Refinitiv. Revenue was $ 3.18 billion, compared to $ 3.24 billion as expected by analysts, according to Refinitiv. Additionally, Nvidia said it expects $ 2.70 billion in revenue in the fiscal fourth quarter, which is below Refinitiv's consensus estimate of $ 3.40 billion.
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Overall, in the fiscal third quarter, Nvidia's revenue increased 21 percent year-over-year, according to its earnings report. In its second-quarter tax earnings, the chipmaker fell short of analyst expectations on guidance despite having outperformed earnings and revenue estimates. The company's cryptocurrency-related products suffered a sharp decline in that quarter, and the trend continued in the fiscal third quarter.
In the fiscal third quarter, Nvidia's revenue from original equipment manufacturers and intellectual property totaled $ 148 million, which decreased 23 percent year-over-year, but exceeded the FactSet consensus estimate of $ 102 million. In the quarter, Nvidia had a $ 57 million charge related to older products, due to declining demand for cryptocurrency mining.
“Our outlook for the fourth quarter game reflects too little shipping in the mid-range Pascal segment to allow channel inventory to normalize. It will take one to two quarters to review additional inventory. This is surely a setback, and I wish we would have seen it sooner, ”said Huang.
Nvidia's gaming business segment generated $ 1.76 billion in revenue in the quarter, below FactSet's consensus estimate of $ 1.89 billion. Nvidia's data center segment had revenue of $ 792 million, lower than the estimate of $ 821 million. Lastly, revenue for the company's professional display business segment was $ 305 million, beating the estimate of $ 284 million.
Nvidia, like most other tech stocks, took a hard hit in October, which was the worst month for the Nasdaq Composite index since 2008. The stock has risen 4 percent since the beginning of the year.
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