Nvidia delivers strong Q4, lowers guidance on coronavirus concerns

Nvidia handily topped estimates for its Q4 and fiscal year financial results on Thursday, but the GPU maker lowered its guidance for the current quarter due to uncertainties from the coronavirus.

The Santa Clara, Calif.-based company delivered a net income of $950 million, or $1.53 per share. Non-GAAP earnings were $1.89 per share on revenue of $3.11 billion, up 41% year-over-year. Wall Street was looking for earnings of $1.67 per share with $2.97 billion in revenue.

For the year, Nvidia delivered EPS of $4.52 on revenue of $10.9 billion, down 7% from $11.72 billion a year earlier. Analysts expected EPS of $5.58 on revenue of $10.78 billion.

Citing a potential revenue impact from the deadly coronavirus, Nvidia said it expects Q1 revenue of $3 billion, plus or minus two percent, above market estimates for $2.85 billion in revenue.

In prepared remarks, Nvidia CEO Jensen Huang said the company posted record data center revenue and saw strong adoption of its accelerated computing products.  

“NVIDIA AI is enabling breakthroughs in language understanding, conversational AI and recommendation engines ― the core algorithms that power the internet today,” Huang said. “And new NVIDIA computing applications in 5G, genomics, robotics and autonomous vehicles enable us to continue important work that has great impact. We are well positioned for the greatest technology trends of our time.”

Broken out, revenue from Nvidia’s GPU business came to $2.77 billion, up 40% percent year-over-year. Gaming revenue was $1.4 billion, data center revenue was $968 million — up 43% from a year ago — and professional visualization revenue came to $331 million. 

Shares of Nvidia were up after hours.

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