Nvidia forecasts revenue below estimates

19 August, 2018, 19:43 | Author: Billie Castillo
  • NVIDIA CEO Jen Hsun-Huang

In spite of the decline, Nvidia reported better-than-expected earnings overall.

That's what happened today, when the Santa Clara, California-based company reported its fiscal second-quarter results and said revenue from cryptomining systems dropped to nearly zero.

For a second quarter in a row, investors ignored Nvidia's growth in its main markets and ditched the stock, which fell about 5% in extended trading.

Revenue from original equipment manufacturers and intellectual property, including products for cryptocurrency mining, was down by 70 per cent at $116 million (£91m), well below the $188 million (£147m) analyst estimate, according to Reuters. The company's net profit was of $1.1 billion, or $1.76 a share, well above its $583 million, or 92 cents, from past year.

The chipmaker now expects third-quarter revenue to be around $US3.25 billion where the Street had previously expected $US3.34 billion. Despite the crypto-related sales decline, sales from gaming surged 52% to $1.8 billion, and data center-related sales surged 83% to $760 million.

Trump Administration Ends $200 Million in Funding for Syria Stabilization Programs
In a tweet, Trump said "the United States has ended the ridiculous 230 Million Dollar yearly development payment to Syria". The department said it has secured approximately $300 million in contributions and pledges from allies since April.

Nvidia reported in May that it had generated a total of $289 million after selling graphics processors used in the crypto mining industry. Non-GAAP earnings were $1.94 per share on revenue of $3.12 billion, up 40 percent year-over-year.

With total revenues standing at $3.12 billion for the three months, cryptocurrency-specific products declined to approximately $100 million with the downward spiral set to continue through the next couple of quarters. Analysts estimated $3.11 billion.

"Growth across every platform - AI, Gaming, Professional Visualization, self-driving cars - drove another great quarter", said Jensen Huang, CEO of Nvidia. "Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need". Automotive grew 13% to $161 million.

That being said, the company has downplayed the actual impact mining demand has had on its financials.

"Even with the weaker outlook, sales are growing 23% y/y, just as the sustainable revenue streams are beating consensus", SunTrust analyst William Stein said in a note sent out to clients after the results. Turing, as it's called, will also make its way into gamer and data centre chips. Operating expenses ended up at $818 million, up by 33 percent compared to the past year and up by six percent from the previous quarter.



Storm injures over a dozen fans at Backstreet Boys concert
Keep your tickets because, Backstreet WILL BE BACK!' Lead singer Nick Carter said he was praying for the injured fans. Concert goers waiting for The Backstreet Boys were injured when a temporary wall collapsed.

The Ford Mustang Cobra Jet 50th is an eight-second vehicle
Production is set to be limited to just 68 cars, in honor of the Cobra Jet's 1968 debut, with each example priced at $130,000. The 2018 Ford Mustang Cobra Jet debuted just in time for the ultimate muscle vehicle gathering: the Woodward Dream Cruise .

CT reports 1st West Nile virus cases of the year
Dispose of tin cans, plastic containers, ceramic pots or similar water-holding containers that have accumulated on your property. In Pennsylvania, the West Nile season is primarily from the middle of the summer to early fall.

Priyanka Chopra, Nick Jonas' dance at engagement bash
Joe Jonas also welcomed Chopra to the family, posting the same image with the caption: " I couldn't be happier for my brother ". Questioning the same, the source said who does that and why would one invite one half of a couple and leave out the other one.

Chelsea's Maurizio Sarri: 'Horrible' 15-minute spell shows Blues must improve
We need a lot of work together and it is my responsibility first, to give this compact block and to give this attacking balance. The Brazilian only managed five in total last season but looks a different proposition since reuniting with his former manager.

President Trump Casually Suggests Giving Analysts Several Months Of Their Lives Back
In a tweet early Friday, Trump said that after speaking with "some of the world's top business leaders", he's asked the U.S. Securities and Exchange Commission to determine whether shifting to a six-month reporting regimen would make more sense.

Brace yourselves - Storm Ernesto is heading our way this weekend
Northern England, parts or Ireland and southern Scotland are all most likely to feel the brunt of the heavy storm. While there was not a direct hit, the storm system was close enough to generate high surf to some shores.

Bledisloe Cup Wallabies name squad with Tom Robertson to start
Waisake Naholo had his best All Blacks match in a season and Crusaders midfielder Jack Goodhue justified all the hype. Wallabies captain Michael Hooper said the focus had already turned to trying to end their Eden Park drought.

OSU President: Urban Meyer Probe "Will Be Finished When It's Finished"
Zach Smith played football at Bowling Green under Meyer and also coached on Meyer's staff at Florida. An announcement on the status of Ohio State head coach Urban Meyer appears to be set for next week.

Three teens charged after Blaxland fire, NSW
The fire had blackened 2300 hectares of land - much of it inaccessible - but it was downgraded to watch and act level before 8pm. Strong winds and dry conditions are now making flames spread in Ulladulla and Bega Valley in New South Wales (NWS), Australia.