Nvidia Reports Record Quarterly Revenue, 2Q Results Beat Projections Amid Pandemic -- Earnings Review

   By Maria Armental

Graphics chip-making giant Nvidia Corp. reported record revenue for the July quarter, driven by gaming and remote computing services demand during the coronavirus pandemic. Here's what you need to know.

PROFIT: Net income rose to $622 million, or 99 cents a share, from $552 million, or 90 cents a share, a year earlier. On an adjusted basis, profit rose to $2.18 a share from $1.24 a share a year earlier. Analysts surveyed by FactSet expected 95 cents a share, or $1.97 a share on an adjusted basis.

REVENUE: Revenue rose to a record $3.87 billion, from $2.58 billion a year earlier, and reflects the acquisition of Mellanox Technologies Ltd. Analysts expected $3.65 billion, while Nvidia projected about $3.58 billion to $3.72 billion. Data center revenue more than doubled to a record $1.75 billion, and gaming rose 26% to $1.65 billion.

OUTLOOK: This quarter, Nvidia projects about $4.40 billion in revenue, compared with analysts' $3.97 billion.

PANDEMIC: Company officials had pointed to some supply-chain disruption as well as a drop in automobile infotainment system demand and autonomous development infrastructure builds. Remote work and study arrangements and gaming, however, have helped Nvidia's business. "Our new Ampere GPU architecture is sprinting out of the blocks, with the world's top cloud service providers and server makers moving quickly to offer NVIDIA accelerated computing," Chief Executive Jensen Huang said in a statement. "Despite the pandemic's impact on our professional visualization and automotive platforms, we are well positioned to grow, as gaming, AI, cloud computing and autonomous machines drive the next industrial revolution around the world."

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

August 19, 2020 16:47 ET (20:47 GMT)

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