Nvidia Beats Consensus, Guides Up

The graphics chipmaker posts top- and bottom-line results ahead of expectations. Shares jump after hours.

Author:: K.C. Swanson
Publish date:: May 6, 2004 5:21 PM EDT

Updated from 4:54 p.m. EDT

Nvidia

said revenue increased to $471.9 million in its first quarter of fiscal year 2005, up 17% from last year's levels. The Wall Street consensus estimate was $461.5 million.

Net income for the graphics chipmaker stood at $21.3 million, or 12 cents a share, up from $19.7 million last year. That's 2 cents ahead of analyst expectations.

In a prepared statement, Chief Executive Officer Jen-Hsun Huang said he was "pleased that our core businesses delivered steady growth and gross margin continued to improve."

The company guided for revenue equal to or slightly above $500 in the quarter now underway, a shade above the consensus estimate of $498 million. Gross margins should improve by 100 to 150 basis points.

Nvidia shares were recently up 55 cents, or 2.5%, to $22.46 in postclose trading. In regular trading Thursday, the stock gained 18 cents, or 0.8%, to $21.91.