NVDA NVIDIA Corporation

By Asa Fitch 

Nvidia Corp. signaled the prospects for sales from its gaming and cloud-computing operations were improving, even as it posted a fourth-straight quarter of lower earnings.

The Santa Clara, Calif.-based company Thursday said revenue from its data-center segment, which makes chips used in cloud-computing, improved sequentially in its fiscal third quarter. Still, data-center revenue fell 8% compared with the year-ago period. Gaming revenue, which made up more than half of overall sales, also fell by 6% compared with last year, although it rose considerably compared with the second quarter.

Nvidia reported a 27% drop in net income to $899 million. Adjusted earnings per share, the chipmaker's more closely watched earnings measure, fell to $1.78 from $1.84 a year ago, well above the $1.58 analysts surveyed by FactSet expected.

The company last year enjoyed strong sales in its third quarter, driven both by customers in China, who placed orders ahead of looming tariffs on some U.S. goods, and by demand for chips used for cryptocurrency mining. Without those benefits, Nvidia's sales fell to $3.01 billion in the quarter ended Oct. 27, down from $3.18 billion a year ago and above analysts' projections.

Write to Asa Fitch at asa.fitch@wsj.com

(END) Dow Jones Newswires

November 14, 2019 17:27 ET (22:27 GMT)

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