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Nvidia Q4 Profit Falls; Shares Slide in After Hours Trading (NVDA)

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NVIDIAShares of Nvidia Corporation (NASDAQ: NVDA), the Santa Clara, California-based provider of visual computing technologies and the inventor of the graphics processing unit (GPU), fell sharply in after-hours trading on Wednesday after the company announced its fourth-quarter financial results.

Nvidia shares dropped 5.38% to $15.30 in after-hours trading on Wednesday. The stock had finished 0.43% lower at $16.17 in regular trading on Wednesday.


After-market close, Nvidia reported fourth-quarter net income of $116 million, or $0.19 per share, compared with $171.7 million, or $0.29 per share reported for the same period in the previous year. On a non-GAAP basis, the company’s net income for the quarter was $158.1 million, or $0.26 per share, compared with $142.4 million, or $0.24 per share reported for the same period in the previous year. Analysts’ surveyed by Thomson Reuters were expecting Nvidia to report non-GAP earnings of $0.19 per share.

Revenue for the fourth quarter rose 7.5% on a year-over-year basis to $953.19 million. Analysts were expecting the company to report revenue of $950.51 million.

Nvidia also provided guidance for the first quarter of 2012. The company expects revenue for the first quarter to come in between $900 million and $930 million. The company’s first-quarter revenue forecast fell short of Street estimates of $944.85 million.

Jen-Hsun Huang, President and CEO of Nvidia, said that he is pleased with the company’s achievements last year. Huang said that the company’s GPU business grew sharply and with the success of Tegra, the company established its position in the mobile market. Huang noted that the company expects continued growth ahead, as Tegra 3 powers a new wave of quadcore super phones and Kepler, its next-generation GPU architecture, sets new standards in visual and parallel computing.

 

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edliston
Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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