Nvidia Q2 2018 earnings

[raghu78]

https://seekingalpha.com/pr/16913411-nvidia-announces-financial-results-second-quarter-fiscal-2018

SANTA CLARA, CA -- (Marketwired) -- 08/10/17 -- NVIDIA (NASDAQ: NVDA)

• Record revenue of $2.23 billion, up 56 percent from a year ago
• GAAP EPS of $0.92, up 124 percent from a year ago
• Non-GAAP EPS of $1.01, up 91 percent from a year ago
• Broad growth across all platforms

NVIDIA (NASDAQ: NVDA) today reported record revenue for the second quarter ended July 30, 2017, of $2.23 billion, up 56 percent from $1.43 billion a year earlier, and up 15 percent from $1.94 billion in the previous quarter.

GAAP earnings per diluted share for the quarter were $0.92, up 124 percent from $0.41 a year ago and up 16 percent from $0.79 in the previous quarter. Non-GAAP earnings per diluted share were $1.01, up 91 percent from $0.53 a year earlier and up 19 percent from $0.85 in the previous quarter.

http://files.shareholder.com/downlo...-69471AD8AC78/Q2FY18_CFO_Commentary_FINAL.pdf

Outlook for Q3 2018 is even better

Third Quarter of Fiscal 2018 Outlook

Our outlook for the third quarter of fiscal 2018 is as follows:
• Revenue is expected to be $2.35 billion, plus or minus two percent.
• GAAP and non-GAAP gross margins are expected to be 58.6 percent and 58.8 percent, respectively, plus or minus 50 basis points.

Kudos to Nvidia. This company is an unstoppable juggernaut. With Volta V100 and Geforce Volta 2018 will be even better. I think Nvidia of today is the Intel of 1990s. The way they are going Nvidia will easily cross USD 10 billion revenue in their next fiscal year. The rate at which Nvidia has grown revenues and profits in the past 2-3 years is unbelievable. When we look back a few years from now the turning point in Nvidia's history might very well be the Maxwell generation.

 

[tviceman]

You know your stock is highly, highly regarded when you beat earnings and guide higher, yet still drop in trading after hours and the next day.

 

[HurleyBird]

Even though I think Nvidia's stock is generally overvalued, it makes zero sense that it would nosedive after massively beating market expectations, and then guiding the next quarter also significantly above expectations.

This is why I hate the stock market. Someone probably had a lot of money invested into seeing the stock fall, and were able to manipulate the stock so that it performed out of sync with reality.

 

[iBoMbY]

Stock trading is becoming more and more irrational, and is mostly not done by humans anymore. Maybe NVidia should implement some hidden routines in their AI products, which would force AI to favor their stock in trades.

 

[FIVR]

Forward P/E (at it's current share price which is 20% off of all time high) is like 40+ and current P/E is worse. The stock has extremely positive sentiment from both institutional and retail investors, and future sentiment is extremely good. I think it is worth $80-100 a share if you consider AR/VR and automated driving but in this current market, it is highly overvalued.


AAPL has 250 billion dollars in cash, a P/E of 15, a 1.6% dividend and is cheaper per share even after nvidia's huge drop. Why on earth would you buy NVDA when you can buy AAPL for less (or the same)?


There are many other stocks that are way better buys than NVDA (including AMD).

 

[HurleyBird]

Sure, it's arguably overvalued, and that's something I'd argue myself, but why would a correction to their valuation come right after they substantially beat estimates and substantially increase guidance? That makes no sense whatsoever.

 

[Genx87]

Their data center growth is amazing.

 

[tviceman]

Even though I think Nvidia's stock is generally overvalued, it makes zero sense that it would nosedive after massively beating market expectations, and then guiding the next quarter also significantly above expectations.

This is why I hate the stock market. Someone probably had a lot of money invested into seeing the stock fall, and were able to manipulate the stock so that it performed out of sync with reality.

It's because pundits already expected Nvidia to beat their own estimates and were "disappointed" that they didn't beat by more. I agree; it's ridiculous.

 

[Arachnotronic]

It's because pundits already expected Nvidia to beat their own estimates and were "disappointed" that they didn't beat by more. I agree; it's ridiculous.

It's not so much "pundits" as investors themselves. I had people who were telling me that NVDA was overvalued at $80 also tell me they were rushing out to buy as much as they could at $170 because it was "obvious that NVDA would beat."

When everyone "expects" a beat, loads up the truck on the basis of that expectation, and then the expectation materializes, then guess what? Those people have nobody to sell to but themselves, and the stock drops.