Post Earnings Coverage as NVIDIA Quarterly Revenue Soared 55%; Adjusted EPS Rocketed 117%
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LONDON, UK / ACCESSWIRE / March 1, 2017 / Active Wall St. announces its post-earnings coverage on NVIDIA Corp. (NASDAQ: NVDA). The Company posted its financial results for the fourth quarter fiscal 2017 (Q4 FY17) and full year 2017 (FY17) on February 09, 2017. The videogame-gear specialist outshined top- and bottom-line expectations. Register with us now for your free membership at:
One of NVIDIA's competitors within the Semiconductor - Specialized space, First Solar, Inc. (NASDAQ: FSLR), reported financial results for the fourth quarter and full year ended December 31, 2016, after the market closes on Tuesday, February 21, 2017. AWS will be initiating a research report on First Solar in the coming days.
Today, AWS is promoting its earnings coverage on NVDA; touching on FSLR. Get our free coverage by signing up to:
In Q4 FY17, NVIDIA reported net sales of $2.17 billion, up 55% above $1.40 billion recorded at the end of Q4 FY16. Growth for the quarter and fiscal year was broad based with record revenue in each of the Company's four platforms: Gaming, Professional Visualization, Datacenter, and Automotive. NVIDIA's revenue numbers shattered analysts' consensus of $2.08 billion.
NVIDIA reported record net income of $655 million, or $0.99 per diluted share, in Q4 FY17 compared to $207 million, or $0.35 per diluted share, in Q4 FY16. Diluted EPS increased 183% on a y-o-y basis. The Company's non-GAAP earnings per diluted share were $1.13, up 117% from $0.52 a year earlier. Analysts on average expected the Company to report earnings of $0.83 per share.
In FY17, Company's net sales came in at $6.91 billion, up 38% from revenue of $5.01 billion in the year ago same period. Furthermore, net income for FY17 stood at $1.67 billion, or $2.57 per diluted share, compared to $614 million, or $1.08 per diluted share, in FY16.
Segment Results
During Q4 2016, from a reporting segment perspective, NVIDIA's GPU revenue grew 57% on a y-o-y basis to $1.85 billion, driven by strength in GeForce GPUs Gaming revenues and datacenter, while Tegra Processor revenue was up 64% to $257 million.
During Q4 FY17, NVIDIA's Gaming revenue was a record $1.35 billion, rising 66% on a y-o-y basis. The Company noted that Gamers continued to upgrade to its new Pascal-based GPUs. Adding to NVIDIA's gaming lineup, the Company launched GTX 1050 class GPUs for notebooks, bringing eSports and VR capabilities to mobile. During Q4 FY17, in Professional Visualization, Quadro revenue grew 11% on a y-o-y basis to a record $225 million, driven by demand for high-end, real-time rendering and mobile workstations. For NVIDA's Datacenter revenue more than tripled from a year ago by 23% sequentially to $296 million. Growth was driven by AI, cloud service providers deploying GPU instances, high Performance Computing, GRID graphics virtualization, and the Company's DGX AI supercomputing appliance. For the Company's Automotive, revenue grew to a record $128 million, up 38% year-over-year. Additionally, the Company's OEM and IP business was $176 million, down 11% year-on-year.
Operating Metrics
For the three months ended on January 29, 2017, NVIDIA posted gross margin of $1.30 billion, or 60% of sales, compared to $791 million, or 56% of sales, in the prior year's same quarter. The Company's operating income for Q4 FY17 came in at $733 million versus $252 million in Q4 FY16. The Company's operating expenses increased 6% y-o-y in Q4 FY17, to $570 million, primarily due to higher research and development expenses. Non-GAAP operating expenses were $498 million, up 12% from a year earlier, reflecting head count-related costs for its AI growth initiatives, as well as investments in sales and marketing. The Company's Q4 2016 GAAP operating income was $733 million, and non-GAAP operating income was $809 million, both more than doubled from a year earlier.
Cash Flow and Balance sheet
For the three months ended on January 29, 2017, NVIDIA generated $721 million in cash from operations compared to $510 million at the end of quarter in the year ago same period. The Company had cash and cash equivalents balance of $6.80 billion as on January 29, 2017, compared to $5.04 billion at the close of books on January 31, 2016.
Dividend & Share Repurchases
In its earnings press release, NVIDIA announced that it will pay its next quarterly cash dividends on its common stock at $0.14 per share. The dividend is payable on March 17, 2017, to all shareholders of record at the close of business on February 24, 2017.
During FY17, NVIDIA returned about $1.00 billion to its investor through dividends and share repurchases. Furthermore, the Company completed its $0.74 billion in share repurchases or $0.26 billion in dividends capital return program in FY17. For FY18, the Company intends to return $1.25 billion to shareholders through dividends and share repurchases.
Outlook
In Q1 FY18, NVIDIA expects revenue in the range of $1.90 billion, + or – 2%, at the mid-point, this represents 46% growth over the prior year. The Company anticipates gross margin for Q1 FY18 to be between 59.5% and 59.7%, plus or minus 50 basis points. GAAP operating expenses are expected to be approximately $603 million.
Stock Performance
On Tuesday, February 28, 2017, the stock closed the trading session at $101.48, dropping 2.81% from its previous closing price of $104.41. A total volume of 15.50 million shares have exchanged hands. NVIDIA's stock price surged 7.91% in the last three months, 64.05% in the past six months, and 225.93% in the previous twelve months. The stock is trading at a PE ratio of 39.76 and has a dividend yield of 0.55%.
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