Nvidia (NVDA) earnings Q1 2021

Jen-Hsun Huang, President and CEO of Nvidia Corp., speaks during the company event at the Mobile World Congress Americas in Los Angeles, California, United States, Monday, October 21, 2019.

Patrick T. Fallon | Bloomberg | Getty Images

Nvidia announced its first quarter results after the bell on Wednesday.

The stock remained essentially unchanged in after-hours trading after losing just over 2% on the day.

Here’s how it went:

  • EPS: $ 1.80, adjusted
  • Returned: $ 3.08 billion

Wall Street had expected adjusted earnings per share of $ 1.69 on revenues of $ 3 billion, according to estimates from the Refinitiv consensus. However, it is difficult to compare the reported profits to analysts’ estimates, as the coronavirus pandemic continues to affect global economies and makes the impact of profits difficult to assess.

“COVID-19 created challenges in supply and demand. At the start of the quarter, our partners’ supply chains were disrupted. The installation of a shelter led to the closure of points of sale in retail and Chinese iCafes, affecting sales of our game products, “said the company. in one letter from the financial director. “However, working from home, learning at home and playing games has resulted in a surge in demand for e-tail.”

Last year, in its first fiscal quarter, Nvidia reported adjusted earnings per share of $ 0.88 on revenue of $ 2.22 billion.

Nvidia plans to generate revenues of approximately $ 3.65 billion in its second quarter with gross margins of approximately 58.6%.

As part of Nvidia’s budget calendar, the quarter ended on April 26, more than a month after the blockages began in the United States and other countries. The company said its employees work from home “very efficiently”.

Nvidia is best known for manufacturing graphics processing units. Its gaming segment grew 25% year-over-year to $ 1.9 billion, the company said. But its fastest growing segment is linked to its data center chips, which are used for compute-intensive tasks, such as machine learning. Nvidia said the segment has grown 80% year-over-year, exceeding $ 1 billion for the first time with sales of $ 1.14 billion. The company also said it completed the acquisition of Mellanox in April, which will also help Nvidia’s data center operations.

“The growth of games and work stations is directly linked to competitive products and the need to work, govern and school from home,” said Patrick Moorhead, president and director of Moor Insights & Strategy.

Excluding movement after normal office hours, Nvidia shares increased by more than 50% over the year while the S&P 500 fell by more than 8%.

Nvidia said Thursday that it is evaluating the “schedule” for its share buyback program and that it will continue to pay dividends.

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