- Nvidia posted fiscal third quarter results which saw sales beat analyst estimates but earnings came in lower than expected.
- Revenue fell 17% year-over-year to $5.93 billion, versus $5.77 billion expected by wall Street. Sales are 12% lower from the previous quarter.
- Earnings per share fell 50% to $0.58, versus the $0.69 analysts expected.
- Gross margins decreased 11.6% to 53.6%, due to an inventory charge because of low demand for data center chips in China. However, it anticipates the gross margin will recover in Q4 2022 to between 63.2% and 66.0%.
- The gaming division’s sales fell 51% to $1.57 billion as retailers carry excess inventory and while Covid policies in China hurt demand.
- The data center business however, increased sales 31% to $3.83 billion thanks to US cloud service providers and consumer internet companies.
- Third-quarter revenue in the Automotive and Embedded division was $251 million, up 86% from a year ago and up 14% from the previous quarter.
- Nvidia returned $3.75 billion to shareholders in the form of share repurchases and cash dividends, bringing the return in the 9 months to $9.29 billion.
- Nvidia expects about $6 billion in sales in the fourth quarter, slightly lower than forecasts. The company remains a top tier chip designer and strategic national asset in the global race for computing dominance. This moat will assist the company in retaining its market share. Shares were higher after hours following the announcement of its latest results. It is a share I own for clients for offshore managed portfolios.
By Lee Kern