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.

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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