Earlier this month, popular graphics card manufacturer NVIDIA announced its earnings for the second quarter of the financial year 2018. The company’s performance has been nothing short of stellar as it continues to ramp up the profits.
Revenues grow yearly:
In continuation of the trend the company racks up profits and has shown considerable growth. The American tech giant recorded total revenue of $3.12 billion in this quarter, which is a stellar growth of 40% compared to the same time last year.
In fact, the company has generated revenue from all of its platforms and streams in this quarter. The profit margins were up by 4.9% in this quarter compared to the same quarter last year and stood at an impressive 63.3%. This is largely owing to the fact that the company operates in a niche segment with the high barrier to entry, as well as the edge that the company gets from the numerous patents the company holds.
In addition to substantial margins, the company also made healthy gains in its operating income with a 68% year on year increase to a total of $1.157 billion. Net income on the other hand also grew significantly by 89% in the same period to $1.101 billion.
The earnings per share grew by a handsome 91% compared to the same time last year and stood at $1.76. All these numbers are even more impressive considering that the company’s annual revenue had grown by 56% year on year in Q2 2017. This growth trend for the company seems to be largely sustainable, with further growth expected in the future as well.
NVIDIA Unveils Turing GPU Architecture; Mainstream Production To Start Next Year
The company’s segments analysed:
The company is largely associated with being a manufacturer of graphics cards and this is the segment that stands out and contributes to the company’s growth. The gaming segment grew by 52% from the same time last year and the revenue stood at $1.805 billion.
This segment has largely held up the company’s revenue, as the demand for GeForce graphics cards and rigs saw a drop due to cooling off in interest in the cryptocurrency segment. The next biggest contributor to the company’s revenue remained the professional visualization segment, which grew by 19.6% to a revenue of $281 million in this quarter. There is further growth expected in this division considering that the tech giant has just launched the Quadro RTX lineup earlier this month.
The data centre segment also continued its stupendous growth as it was up by 83% on a year on year basis and stood at a revenue figure of $760 million for this quarter. The expansion that the company has made in this division has contributed to the growth.
The other segment that went up is the automotive division that grew to $161 million in revenue, a 13% year on year growth. It is likely that the company will be disappointed with the growth made in this division. However, what was more disappointing was the drop in cryptocurrency segment revenue. The company had earmarked $100 million in revenue for OEM order relating to cryptocurrency rigs, but it had delivered only $18 million in this segment.
NVIDIA also doesn’t expect a rapid rise in demand, like the one witnessed in the last year, for cryptocurrency GPUs and orders have been rapidly reducing. This is largely attributed to the rapid drop in cryptocurrency prices in the recent months. The company also has an ambitious forecast, as it expects revenue to grow to $3.25 billion (with an estimated fluctuation between 2%) in the next quarter and margins to grow to 62.6% as well in the next quarter.
NVIDIA May Launch Graphics Card – GEForce GTX 11 In August
The post NVIDIA Announces Q2 Results: Total Revenue Of $3.12 Billion appeared first on MySmartPrice.
from MySmartPrice https://ift.tt/2ogSDa6
No comments:
Post a Comment