NVIDIA Releases Its Financial Results for Q4 and Fiscal 2019

cageymaru

cageymaru

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NVIDIA's announcement of better-than-expected earnings for Q4 2019 caused the stock to rise 8% in after hours trading. NVIDIA reported Q4 2019 revenue of $2.21 billion, down 24% from $2.91 billion a year earlier, and down 31% from $3.18 billion in the previous quarter. Analysts expected $2.20 billion in Q4 2019. NVIDIA reported record full-year revenue of $11.72 billion, up 21 percent from a year ago.

NVIDIA's gaming business generated $954 million in revenue, which was under the $1.21 billion that analysts predicted. The Data Center business segment made $679 million in revenue, which was far less than the $839 million consensus estimate from analysts polled by Refinitiv. Other misses included the Professional Visualization segment, Automotive segment, original equipment manufacturers and intellectual property. NVIDIA's outlook for the first quarter of fiscal 2020 includes revenue that is expected to be $2.20 billion, plus or minus 2%. NVIDIA says its fiscal 2020 revenue is expected to be flat to down slightly.

"This was a turbulent close to what had been a great year," said Jensen Huang, founder and CEO of NVIDIA. "The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter. "Despite this setback, NVIDIA's fundamental position and the markets we serve are strong. The accelerated computing platform we pioneered is central to some of world's most important and fastest growing industries -- from artificial intelligence to autonomous vehicles to robotics. We fully expect to return to sustained growth," he said.
 
I love how Nvidia beats their own lower than analysts forecasts and it causes stock to jump. Well played Nvidia, my portfolio thanks you. The results looked like a mix bag (the gains in other markets are small compared to loss in gaming revenue) and the guidance next quarter doesn't look promising so maybe just a mirage.
 
Given the announcement of lowered earnings a few weeks ago and flat/slow growth for the next year, I think this stock has done quite well. I was expecting it to to drop more.
Just shows anyone - never take investment advice from me.
No denying they are the market leader in GPU's and arguably AI tech.
 
cageymaru said:
NVIDIA reported Q4 2019 revenue of $2.21 billion, down 24% from $2.91 billion a year earlier, and down 31% from $3.18 billion in the previous quarter. Analysts expected $2.20 billion in Q4 2019.
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cageymaru said:
NVIDIA's gaming business generated $954 million in revenue, which was under the $1.21 billion that analysts predicted.
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Read the second quote as them expecting $2.21bn in the gaming segment, which would be more than their total expected revenue. $1.21bn is much more reasonable. lol
 
Weren't we just reading an article last week of suspicion that Nvidia may have lowballed their true earnings during the height of cryptocurrency to hold back revenue in order to inject into future earnings so as not to cause a stroke with investors when future earnings would get released? I'm with Nobu on this one.
 
You'd think will all them bones, they'd lower gpu prices a tad.......:cautious:
 
Krenum said:
You'd think will all them bones, they'd lower gpu prices a tad.......:cautious:
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Nah, unbridled greed will prevent that most likely. Besides, think of all that spare money new builders have from lower memory and SSD prices that can just go into NVIDIA's pocket. ;)
 
"Nvidia blamed the severe gaming downturn on several factors, including sales of its Turing RTX 2070 and 2080 graphics cards that were below the company's expectations for the launch of a new architecture. Nvidia opined that gamers might be waiting for more real-world examples of ray-traced games, which were notably absent at the launch of the Turing GPUs, before purchasing a new gpu"

So it's not the pricing according to Nvidia...ok...LOL
 
Auer said:
So it's not the pricing according to Nvidia...ok...LOL
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This is reminiscent of Tim Cooks statements. Blame everything else but your inflated pricing.

Worse, instead of adjusting it's pricing, NVIDIA is hammering developers and probably throwing money at them to implement Ray Tracing and DLLS. Oh, and BS real time ray-tracing needs DLLS, otherwise it bogs down performance to unplayable levels.

Let's call out RTX for what it is: smoke in mirrors. NVIDIA hasn't brought us real time ray-tracing. Hell, If AMD got sued over Bulldozer cores, then sure as shit NVIDIA deserves to be sued over misrepresenting the RTX features. Tracing a dozen rays here and there in rasterized graphics and asking DLLS to take a best guess what those pixels are is not real time ray-tracing.

DLLS in itself is a lie. So now I want to play at 4K because of the rich pixel density that this resolution affords me, yet I will have my image rendered at 1440p with some best guess AA applied to it? No thanks.

Try BF5 with DLLS at 4K and without, and with old school AA, and tell me which looks better.

Maybe one day we'll have proper GPU that can render images using ray-tracing in real time. We're at least a decade away from that, and we'll need something way faster than whatever we can get out of silicon chips to accomplish that.

NVIDIA: fake it until you make ot. The rest of us aren't so stupid to buy into your BS.

Disclaimer: I own an RTX 2080 FE and it's a decent card, but not any better than the last gen Pascal GPUs.... The 1080Ti is still awesome and has more VRAM.
 
And their inventory piles up and up.
If they cut prices, does that mean they have to cut the value of tje inventory? Take a write off?
For now, they don't have to cut prices.. they stand mostly alone.
A supposed melt down of 'gaming' lends credance that they fudged their crypto sales and rolled it into other segments to present sustainable growth which didn't exist. Can't imagine gaming not being a anything but a fairly stable market, that if anything might be shrinking slowly.
 
Krenum said:
You'd think will all them bones, they'd lower gpu prices a tad.......:cautious:
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Wouldnt think that since their stock price and GPU prices really have no correlation.

The amount of casual observers here that say "good their GPU prices will come down now" whenever there's some FUD article about their stock "tanking" is always baffling.

Their GPU pricing is an expression of the market's support for it - nothing more or less. And they're legally obligated to their shareholders to make as much profit as possible. Gamers may not like it but that's how the world works.
 
odditory said:
Wouldnt think that since their stock price and GPU prices really have no correlation.

The amount of casual observers here that say "good their GPU prices will come down now" whenever there's some FUD article about their stock "tanking" is always baffling.

Their GPU pricing is an expression of the market's support for it - nothing more or less. And they're legally obligated to their shareholders to make as much profit as possible. Gamers may not like it but that's how the world works.
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Actually, those pesky analysts have something to do with NVIDIA's stock price, and them people devour through review sites and forums in order to make a recommendation. Unlike a day trader or a stockbroker, those analysts have to work really hard for their paycheck and are held responsible for the recommendations they make. Ergo, NVIDIA's GPU pricing has a lot to do why their GPU's don't sell well, so that's one of the reasons why the stock price is down. No worries, NVIDIA milks the enterprise market as well, but the waters there are much calmer. Another reason is RTX tech and the fact that it's nearly worthless to gamers. And, until you get up to the RTX 2080 Ti, nothing in their lineup is any better than the last generation. All of these variables are taken into account by analysts. Jensen Huang has a well-founded fear of stock analysts, just watch one of his many interviews where he talks about how NVIDIA almost failed before they even released their first product. So he is very careful when he talks about why NVIDIA stock is not performing well.

By the way, am I the only one who thinks that these large corporations keep raising the prices of their products in order to keep their stock price up? Apple does the same. When will this end?
 
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