Nvidia forecasts revenue above estimates despite US$100 million coronavirus hit

Nvidia forecasts revenue above estimates despite US$100 million coronavirus hit

Nvidia Corp on Thursday forecast first-quarter revenue above Wall Street expectations despite a hit of US$100 million from the coronavirus outbreak, sending its shares up nearly 7per cent in extended trading.

nVIDIA at the E3 2017 Electronic Entertainment Expo in Los Angeles
FILE PHOTO - The nVIDIA booth is shown at the E3 2017 Electronic Entertainment Expo in Los Angeles, California, U.S. June 13, 2017. REUTERS/ Mike Blake

REUTERS: Nvidia Corp on Thursday forecast first-quarter revenue above Wall Street expectations despite a hit of US$100 million from the coronavirus outbreak, sending its shares up nearly 7per cent in extended trading.

The company, which reinforced expectations of a rebound in chip demand, is the second chipmaker after Qualcomm Inc to warn about a potential impact on its businesses due to the outbreak.

The virus has so far killed 1,367 people, infected about 60,000 people on the Chinese mainland and spread to at least 24 countries. It has led to lockdown of cities and factory closures that have disrupted supply chains.

The Santa Clara, California-based company said it expects current-quarter revenue of US$3 billion, plus or minus 2per cent, the midpoint of which is above analysts' expectation of US$2.86 billion, according to IBES data from Refinitiv.

Revenue from Nvidia's closely watched data center chips business rose 42.6per cent to US$968 million in the fourth quarter, beating analysts' estimate of US$829 million, according to research firm FactSet.

Revenue from its gaming business, still the biggest contributor to sales, rose 56per cent to US$1.49 billion, but fell short of analysts' estimate of US$1.52 billion, according to FactSet.

Total revenue in the quarter rose about 41per cent to US$3.11 billion, above analysts' estimate of US$2.97 billion, according to IBES data from Refinitiv.

Nvidia's net income rose to US$950 million, or US$1.53 per share, in the fourth-quarter ended Dec. 31, from US$567 million, or 92 cents per share, a year earlier.

Excluding items, it earned US$1.89 per share, above estimates of US$1.69.

(Reporting by Amal S in Bengaluru and Stephen Nellis in San Francisco; Editing by Sriraj Kalluvila)

Source: Reuters

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