) reported third quarter fiscal 2013 adjusted earnings per share
of 34 cents, beating the Zacks Consensus Estimate of 30
The company reported total revenue of $1.20 billion in the
quarter, up 12.9% from $1.07 billion in the year-ago quarter.
The revenue for the third quarter was mainly driven by strong
demand for the company's Kepler GPUs, which are mainly used in
the desktops and record performances of notebook and Tegra
Revenue from GPU business moved up 14.7% on a year-over-year
basis. Continuous launch of the company's new Kepler desktop
products and also some new launches by the OEM partners.
However, the company's Professional business was down 4.2% on
a year-over-year basis. Nonetheless, the company witnessed
shipments improving sequentially as the company launched its new
Kepler-based Tesla products, which are expected to support the
new Titan supercomputer. In this particular segment, the company
witnessed year-over-year growth in Tesla products, which was
partially offset by the weak economic conditions impacting demand
for Quadro products.
This apart, the company's Consumer business moved up by 27.6%
year-over-year on the back of Tegra business.
Gross margin on a GAAP basis was 52.9% versus 52.2% in the
year-ago quarter. Efficient cost management and change in sales
mix of high-margin products led the company to post decent gross
margin. On a non-GAAP basis, gross margin was 53.1%, which
increased from 52.5% reported in the year-ago quarter.
GAAP operating expense in the quarter stood at $384.4 million,
up 6.9% from $359.6 million in the previous quarter.
The company reported a net income of $209.1 million or 33
cents per diluted share on a GAAP basis, compared with $178.3
million or 29 cents a share in the year-ago quarter. Excluding
special one-time items but including stock-based compensation
expenses, adjusted net income was 34 cents per diluted share.
Balance Sheet & Cash Flow
The company exited the quarter with cash, cash equivalents and
marketable securities of $3.4 billion, up from
$3.3 billion in the previous quarter. Inventories during the
quarter were $428.9 million, up from $387.2 million in the
Share Repurchase & Dividend
During these earnings announcements, the company also declared
that it is initiating the payment of a quarterly cash dividend,
and will also carry on with the existing $2.7 billion
share-repurchase program, till December 2014.
For the fourth quarter of fiscal 2013, the company expects
revenue to be in the range of $1.025 billion and $1.175 billion.
Whereas, GAAP and non-GAAP gross margins are expected to be
remain flat sequentially at 52.9% and 53.1%. Operating
expenses are expected to $400 million, while
non-GAAP operating expenses are projected at $359
NVIDIA delivered modest third quarter results. The reported
EPS beat the Zacks Consensus Estimate and revenue increased on a
year-over-year basis. The company witnessed strong demand for the
company's Kepler GPUs products, and also shipments of new
Kepler-based Tesla products improving sequentially.
On the other hand, NVIDIA's performance may be slightly
hampered by the economic slowdown in Europe. Moreover, advanced
chips developed by
Advanced Micro Devices Inc.
) may increase competition for the company.
Currently, NVIDIA has a Zacks #3 Rank, implying a short-term
ADV MICRO DEV (AMD): Free Stock Analysis
INTEL CORP (INTC): Free Stock Analysis Report
NVIDIA CORP (NVDA): Free Stock Analysis
To read this article on Zacks.com click here.