Nvidia Corporation (NASDAQ: NVDA) reported fiscal Q4 2020 earnings for the period ending January 26, 2020, beating estimates in a long awaited return to growth for the company.
The graphics card and processor company reported sales of $3.105 billion for the quarter which beat consensus estimates of $2.98 billion. Revenues were up 41% compared to the same quarter the previous year, which is the first quarter the company has grown revenues in nearly a year.
Sales in the company’s gaming was particularly strong with the company reporting $1.49 billion in sales over the quarter, growth of 56% year over year.
From a profitability perspective, Nvidia posted earnings of $1.89 per share which surpassed analyst expectations of $1.67.
Nvidia also provided guidance for the next quarter (fiscal Q1 2021), expecting sales of $3 billion (+/- 2%) on gross margins of between 65% and 65.4%. Notably the company reduced their revenue estimates by $100 million based on the anticipated impacts of the coronavirus.
Nvidia reported this quarter after several of it’s semiconductor rivals such as Intel (NASDAQ: INTC) and AMD (NASDAQ: AMD) who both performed well and had rosy outlooks for the upcoming quarter driven by data centre related sales.
However, rosy the outlook for Nvidia it is priced much higher than those rivals.
Source: YCharts
While Nvidia’s price to sales is much higher than Intel’s or AMD’s, it’s stock hasn’t been the best performer over the past year. Nvidia’s stock is up just under 80% in the past year, whereas AMD has had a huge run over that same period, up nearly 140%.
In after market trading after Nvidia released their earnings result the stock was up 6.5% as of the time of publishing.
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