Graphics chip maker Nvidia Corp. (NVDA) said Thursday after the markets closed that its third quarter profit rose 74% from last year, helped by healthy market demand, better cost control and a hefty gain related to insurance reimbursement. The company's quarterly earnings per share, excluding items, also breezed past Wall Street expectations as did its quarterly revenue.
The Santa Clara, California-based company reported GAAP net income for the third quarter of $107.6 million or $0.19 per share, compared to $61.7 million or $0.11 per share for the year-ago quarter.
The latest quarter results include a benefit of $25.1 million related to insurance reimbursements received during the quarter.
Excluding items, non-GAAP net income for the third quarter was $110.3 million or $0.19 per share, compared to $111.4 million or $0.20 per share in the prior year quarter.
On average, 21 analysts polled by Thomson Reuters expected the company expected the company to report earn $0.10 per share for the third quarter. Analysts' estimates typically exclude special items.
GAAP gross margin for the quarter improved to 43.4% from 41.0% a year ago, while non-GAAP gross margin declined to 41.0% from 41.9% last year.
Revenue for the third quarter increased to $903.21 million from $897.66 million in the same quarter last year. Third quarter revenue grew 16% sequentially. Twenty-three analysts had a consensus revenue estimate of $838.09 million for the third quarter.
"We continued to make progress in the third quarter with healthy market demand across the board," said Jen-Hsun Huang, president and chief executive officer, Nvidia. "Revenue was up from a year ago, with improvement in each of our PC, professional solutions and consumer businesses."
For the first nine months, the company reported a GAAP net loss of $199.1 million or $0.36 per share, compared to GAAP net income of $117.6 million or $0.20 per share for the same period last year.
Non-GAAP net income for the nine-month period was $101.4 million or $0.18 per share, compared to $397.7 million or $0.68 per share in the prior year period.
Revenue for the nine-month period fell to $2.34 billion from $2.94 billion in the corresponding year-ago period.
Looking forward, Nvidia expects fourth quarter revenue to to be up slightly, about 2%, from the third quarter, implying fourth quarter revenue of about $921.27 million. Analysts currently expect the company to post revenue of $868.11 million. GAAP gross margin for the fourth quarter is expected to be in the range of 40% to 42%.
Nvidia shares, which have traded in a range of $5.75 to $16.58 over the past year, closed Thursday's regular trading session at $12.27, up 29 cents or 2.42%. The stock is currently gaining 77 cents or 6.28% in after hours trading.
For comments and feedback: editorial@rttnews.com