NVIDIA Post A Record Quarter: Profit From $ 1.33 With $ 2.64 Billion Revenue, Q3 FY18 Financial Results Analyze

NVIDIA NASDAQ: NVDA 216.14 5.27% yesterday reported record earnings for the third quarter ended Oct. 29, 2017, from $ 2.64 billion, up 32 percent from $ 2.00 billion in the previous year, and up 18 percent from $ 2.23 billion in the previous quarter. Looks like nobody can stop NVIDIA's bullish climb to a star (and an increased P / E rate). The company completely destroyed analyst expectations by EPS 94 cents and $ 2.36 billion in revenue. So, the eternal question reminds us of his head, whether it eventually exhausts or we can expect much more in the place to come. Before we explore the fundamentals, let's look at the financial summaries.

NVIDIA Post A Record Quarter: Profit From $ 1.33 With $ 2.64 Billion Revenue, Q3 FY18 Financial Results Analyze

  •     Record revenue of $2.64 billion, up 32 percent from a year ago
  •     Record GAAP EPS of $1.33, up 60 percent from a year ago
  •     Growth across all platforms
  •     Quarterly cash dividend raised 7 percent to $0.15 per share. Company intends to return $1.25 billion to shareholders in fiscal 2019

 NVIDIA NASDASQ: NVDA 216.14 5.27% recorded growth across all market segments: Given 109% growth in Datacenter and 25% in Gaming this quarter

GAAP earnings per diluted share for the quarter was $ 1.33, up 60 percent from $ 0.83 a year ago and up 45 percent from $ 0.92 in the previous quarter. Diluted non-GAAP earnings per share was $ 1.33, also a record, up 41 percent from $ 0.94 a year earlier and up 32 percent from $ 1.01 in the previous quarter.

Take - Very bullish overall indicator, solid growth in the automotive segment is needed to trigger the next level of ascent

NVIDIA blew out all expectations and there seems to be no end in sight at this bull barrel. But one thing to keep in mind is that the current level of P / E traded in stocks is very high, which means that when security is exhausted, investors can expect a market correction to the P / E level of the industry. price. So the question becomes, will this trend continue? Well, let's look at the breakdown segment first

NVIDIA Post A Record Quarter: Profit From $ 1.33 With $ 2.64 Billion Revenue, Q3 FY18 Financial Results Analyze

 This is a truly phenomenal quarter and the company managed to record growth in every corporate segment. The hero of the result is none other than Datacenter which is now the second largest segment in the company and also on the way to be a big contributor to all revenue. It is worth noting also that unlike Gaming revenues that are vulnerable to market fluctuations and sentiments, the Datacenter segment is a much more reliable revenue stream and this is reflected in market reaction (NVDA stock prices jumped a few dollars after the report was released).

The company is clearly making serious progress on the Datacenter side and it definitely has an almost perfect gaming market grip. I feel that in order to trigger the next level of ascent, NVIDIA must post solid growth in the automotive sector. It will be one of the biggest battlefields for future silicone home designs and a solid grip from an early age will be helpful. The company managed to book an increase in revenue of 13% - and in other similar companies that would be great - but not as we expect from the only provider of complete DNN + Visual Processing processing packages for autonomous cars on the market. now.This is something that NVIDIA might achieve next quarter due to the fact that it has recently launched a Pegasus board that is several times more powerful than the latest generation of NVIDIA proprietary technologies on the market and provides multiple generations performance boots combined into one. Depending on how quickly a company can get a design win, it could be the catalyst needed to trigger a slowing growth in the Autonomy segment - something that is needed to justify the next level of P / E.

The less fire from Intel and AMD

There's also something else I need to talk about and that's why AMD and Intel are positioning themselves against NVIDIA that sends out the dangers that companies present. It is a bullish indicator and a bearish indicator simultaneously - because although it shows that the company has made considerable progress it can be taken seriously by the competition, the other two entities in triopoly collude together can make things difficult for the green. Kaby Lake - G lineup is Intel's latest joint venture with AMD to create a processor that has Intel CPU and integrated Radeon GPU. AMD has also just lost King Koduri to Intel and that means the company is ready to enter the discrete GPU market, which will compete directly with NVIDIA.

With the position we see from Intel and AMD, it is clear that NVIDIA will see increased competition in its main segment. The KBL-G series poses a serious threat to the design win in the mid-market segment which is one of the most populous. These are people who do not want a laptop for the purpose of playing solely but still love some of the ability to play games. From what we've seen from the KBL-G chip so far, it's beating the low end NVIDIA processors like the MX150. ">The higher end peer spends a lot of effort, and sharing the same package (in KBL-G) has the added benefit of improving power efficiency.Similarly, Intel's entering the discrete graphics market will pose a threat to NVIDIA's dominance in the deep learning sector. This is the learning age of machines and almost all machine learning takes place on GPGPU-based platforms such as CuDNN. With Intel quickly gaining the ability to produce this coveted piece of technology, it is clear that this is a serious loss for NVIDIA. Their CEO stated that Intel would not be able to produce a brand new until at least 3 years, but we would not be so sure that since licensing deals with AMD could jump start from Intel costs to edge computing and DNN Space

NVIDIA NASDAQ: NVDA 216.14 5.27% Q3 FY18 GAAP and Non-GAAP Quarterly Results  

NVIDIA Post A Record Quarter: Profit From $ 1.33 With $ 2.64 Billion Revenue, Q3 FY18 Financial Results Analyze

Fourth Quarter of Fiscal 2018 Outlook

Our outlook for the fourth quarter of fiscal 2018 is as follows:

Revenue is expected to be $2.65 billion, plus or minus two percent. 
GAAP and non-GAAP gross margins are expected to be 59.7 percent and 60.0 percent, respectively, plus or minus 50 basis points.
GAAP and non-GAAP operating expenses are expected to be approximately $722 million and $600 million, respectively.
GAAP and non-GAAP other income and expense are both expected to be nominal.GAAP and non-GAAP tax rates are both expected to be 17.5 percent, plus or minus one percent, excluding any discrete items. GAAP discrete items include excess tax benefits or deficiencies related to stock-based compensation, which we expect to generate variability on a quarter by quarter basis.
Capital expenditures are expected to be approximately $75 million to $85 million, excluding the planned purchase of the property containing our new Santa Clara campus building.

Source : https://wccftech.com

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