logo
Share SHARE
FONT-SIZE Plus   Neg

Nvidia Cuts Q4 Revenue Outlook, Shares Decline - Update

Graphics chipmaker Nvidia Corp. (NVDA) on Tuesday lowered its revenue outlook for the fourth quarter, citing a global disk-drive shortage due to flooding in Thailand and a more than expected decline in business for the company's Tegra 2 processor. Nvidia's shares declined almost 4 percent in after-hours trading.

The Santa Clara, California-based company now forecasts revenue for the fourth quarter ending January 29, 2012 to be $950 million, plus or minus 1 percent, compared with the prior forecast for revenue of $1.066 billion, plus or minus 2 percent.

On average, 30 analysts polled by Thomson Reuters expect the company to report revenues of $1.06 billion for the quarter. Analysts' estimates typically exclude special items.

Nvidia said that global disk-drive shortage caused by the flooding in Thailand had a more than expected impact on the market for graphics processors.

As a result, some computer manufacturers reduced shipments, while the higher prices of disk-drives constrained the ability of some computer makers to include graphics processing units in their systems.

In addition, Nvidia noted that business for its Tegra 2 processors for smartphones and tablets declined more rapidly than expected, ahead of devices based on the newer quad-core Tegra 3 processor ramping into production in the first quarter of calendar year 2012.

In early November, Nvidia reported an increase in profit for the third quarter, reflecting higher gross margins and double-digit revenue growth driven by demand for its graphic chips. The company's third-quarter net income was $178 million or $0.29 per share, up from $85 million or $0.15 per share in the same period last year. Revenue for the quarter grew 26.3 percent to $1.07 billion from $844 million last year.

NVDA closed Tuesday's trading at $14.94, up $0.33 or 2.26 percent on a volume of 18.27 million shares. In after-hours, the stock declined $0.59 or 3.95 percent to $14.35.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Fast food giant McDonald's on Wednesday announced its global growth plan, targeting sales growth of 3-5% beginning in 2019. The company also highlighted its vision for new restaurants relying on technology such as self-ordering kiosks, curbside pick ups and partnerships with delivery services. At... Canadian drug-maker Valeant Pharmaceuticals International, Inc. on Tuesday reported a loss for the fourth quarter that widened from last year on a double-digit decline in revenues. However, both revenue and adjusted earnings beat analysts' estimates. Valeant also said it plans to relaunch its sexual dysfunction drug Addyi in the U.S. Electronics retailer Best Buy Co., Inc. Wednesday issued guidance for first-quarter adjusted earnings and revenues, below market estimates. Comparable sales are expected to be weak. For fiscal 2018, the company projects higher revenues and operating income. In its fourth quarter, the company posted higher profit, above market view, while revenues missed estimates with lower comparable sales.
comments powered by Disqus
Follow RTT