Nvidia sinks after cutting its guidance (NVDA)

Marco Green
Августа 19, 2018

Sales of graphics chips to miners of cryptocurrencies like ethereum dried up faster than expected, the company said. Even that prediction was too high. Analysts had expected $1.67 a share, or $1.85 on an adjusted basis, on $3.1 billion in revenue, according to FactSet.

The report also states that the company returned USA $837 million to shareholders through a combination of $655 million in share repurchases and $182 million in quarterly cash dividends in the first half of fiscal 2019.

Shares of Nvidia closed down 0.35% Thursday after falling as much as 1.5% in regular trading ahead of the report. The stock has a market cap of $154.66 billion, a P/E ratio of 54.90, a PEG ratio of 3.51 and a beta of 1.56.

Total revenue rose 40 percent to $3.12 billion.

Reports suggest that the upcoming Nvidia GTX 1180 will be able to deliver similar performance as compared to the Titan V and keeping in mind that this is a $3000 graphics card that we are talking about, that is some serious performance.

Similarly, the company's revenue from the data-centers will spike by over 78 percent, bringing in about $740 million. The company provided EPS guidance of $1.85-2.02 for the period, compared to the Thomson Reuters consensus EPS estimate of $1.99.

NVIDIA VP, Professional Visualization, Bob Pette stated that the Quadro RTX heralds the beginning of a new era in the global computer graphics sector by providing powerful capabilities that the industry was not expecting to come to fruition this early. Automotive grew 13% to $161 million.

Back to details of the crytocurrency value crash impact, and we read that "Our revenue outlook had anticipated cryptocurrency-specific products declining to approximately $100 million, while actual crypto-specific product revenue was $18 million", according to a statement (PDF) written by Nvidia CFO Colette Kress.

"With the launch of the Turing chip this week, Nvidia has solidified its market leadership position in the graphics and AI space", Geeta Chauhan, chief technology officer with Silicon Valley Software Group, said in a recent note sent out to clients. This growth will represent a year-on-year surge of 47 percent.

During the earnings call, Huang named transportation as one vertical that has a lot of potential for future growth for data center.

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