Nvidia reports Q4 results: ‘it was a significant beat and raise quarter’

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Nvidia Corp (NASDAQ: NVDA) on Wednesday said its profit doubled as sales hit a record high in the fiscal fourth quarter. Shares still slipped 2.0% despite strong guidance for the future.  

Q4 results and future guidance

Net income came in at $3.0 billion versus the year-ago figure of $1.46 billion.
Nvidia earned $1.32 per share on an adjusted basis; an increase from last year’s 78 cents and beating FactSet consensus by 9 cents.
Revenue jumped 53% to an ATH of $7.64 billion. Analysts had expected $7.42 billion.
Gaming sales were up 37% (record high) and ahead of FactSet consensus, as per the earnings press release.

Data-centre sales climbed by 71% (record high) – also above experts’ forecast.
Q1 revenue expected between $7.94 billion and $8.26 billion. This compares to analysts at $7.31 billion.

Needham analyst reacts to Nvidia’s earnings report

The earnings report comes only days after Nvidia’s $40 billion deal to buy Arm collapsed on regulatory pressures. On CNBC’s “Closing Bell”, Needham’s Rajvindra Gill said:

I think on the call we’d hear more about the omniverse opportunity and their shift towards higher gross margins by selling more software. Maybe get an update on what’s next after the Arm deal dissolved, is there a new strategy? In our view, Nvidia should be the first trillion-dollar semiconductor company.

The analyst rates Nvidia at “buy” with a price target of $400 that represents a 60% upside from here. According to Gill, economic slowdown and supply constraints are less of a risk for Nvidia. Commenting on the after-hours price action, he said:

The numbers look great. It was a significant beat and raise quarter. Nvidia is growing over a 100% almost entirely organically, generating significant FCF. So, I’m surprised by the stock reaction. I think there’s just a general concern about the semicycle and higher interest rates affecting valuations.

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