Nvidia Corp. (NVDA - Get Report) shares traded higher Friday after the chip designer posted stronger-than-expected fourth quarter earnings and said sales for its current financial year would top Wall Street forecasts as key markets in China recover from their current slump.
Nvidia said adjusted non-GAAP earnings for the three months ending in January, its fiscal fourth quarter, fell 53.4% from the same period last year to 80 cents per share, but still topped Wall Street's lowered estimate of 75 cents per share after Nvidia warned of slowing growth prospects in late January. Group revenues, Nvidia said, fell 24% to $2.21 billion but again beat the Street consensus forecast.
Looking ahead, Nvidia said it sees full-year revenues that would be "flat to down slightly" from the $11.7 billion tallied in the 2019 financial year, a forecast that topped analyst's expectations, as gaming chip demand -- which comprises just under half of its top line -- rebounds following a clear-out of cryptomining-related inventory that should occur in the current quarter.
"China's an important market and it's an important gaming market. And I very confidence this is going to rebound," CEO Jensen Huang told investors on a conference call late Thursday. "The China economy is in the final analysis of growth economy. And so we're looking forward to it recovering. And gaming is one of the most important pass-times of their culture and so I'm excited about our prospects there."
Nvidia shares were up 3.5% to $159.95 in trading Friday.