Nvidia’s Record Q4 Revenue and Earnings Beat Estimates, Issues Guidance

Nvidia (NVDA) delivered stronger-than-expected Fiscal Q4 2022 and full-year results driven by exceptional demand for computing platforms. Record revenue and earnings came in above analyst estimates driven by Gaming, Data Center, and Professional Visualization growth.

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Nvidia designs, manufactures, and sells computer graphics processors, chipsets, and related multimedia software.

Nvidia Earnings

The company posted fourth-quarter revenue of $7.64 billion, up 53% year-over-year, and better than consensus estimates of $7.42 billion. The increase was driven by record revenues in Gaming, Data Center, and Professional Visualization market platforms. Nvidia also posted record full-year revenue of $26.91 billion, up 61% year-over-year.

Non-GAAP diluted earnings per share landed at $1.32 in the fourth quarter, up 69% year-over-year and above consensus estimates of $1.22. Non-GAAP diluted earnings for the full year were up 78% year-over-year to $4.44 per share

Revenue is expected to be $8.10 billion-plus or minus 2% for the first quarter of Fiscal 2023. Non-GAAP gross margins are expected to be 67% plus or minus 50 basis points.

During the quarter, Nvidia paid $100 million in quarterly cash dividends and $399 million for the full year. The company plans to pay a quarterly cash dividend of $0.04 per share on March 24, 2022, to shareholders of record on March 3, 2022. Nvidia’s dividends have increased over the past four years, leading to a dividend yield of 0.07%

In addition, Nvidia has confirmed the termination of the Arm Limited Share Purchase Agreement with Softbank Group Corp, citing regulatory challenges.

Stock Rating

Yesterday, Wedbush analyst Matt Bryson reiterated a Hold rating on Nvidia stock. The neutral stance stems from concerns about the company’s valuation.

Consensus among analysts is a Strong Buy based on 21 Buys and 3 Holds. The average Nvidia price target of $356.25 implies 34.38% upside potential to current levels.

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