Nvidia tops Q1 estimates, forecasts Q2 revenue to be above expectations

Nvidia released its first-quarter earnings report after hours on Thursday, beating on both top and bottom lines. The company said that coronavirus did impact both supply and demand but expects Q2 revenue to come in above estimates due to the demand for its computing chips. Yahoo Finance’s Myles Udland breaks down the company’s earnings report on The Final Round.

Video Transcript

JEN ROGERS: Got some earnings news, moving here on a big mover recently, and that's in video. Myles Udland has the numbers. Myles.

MYLES UDLAND: All right, Nvidia coming out with its latest quarterly report, beating on the top-- on the bottom line here $1.80 on adjusted earnings per share. $1.69 is what the Street was looking for. Also beating on the top line $3.08 billion in revenue. The Street was looking for something right around $3 billion.

Now, the stock is down just a little bit in after-hours trading off that one 1.4%. For the second quarter, the company sees revenue at 3.65 billion, plus or minus 2%. Now, that's better than the 3.2%-- or the $3.2 billion that the Street had been looking for. But they do see a bit of margin pressure in the current quarter. They're looking for gross margins to come in between a range here of 58.6% to 66%.

Well, their gross margins in the first quarter were 65.1%. So likely, that margin's come down a couple basis points there during the current quarter. Again, the stock is off right around 1% right now in after-hours trading. But I would note, this is a stock that is up 50% so far this year. It's low back in mid-March, right around $200 per share. And in the after-hours, shares of Nvidia are sitting right around $348.

JEN ROGERS: It's not often in a release these days that we get the word "excellent." Nvidia had an excellent quarter. So I mean, there is the one, two punch in this company, as Myles noted, records here for Nvidia recently. They've got gaming with the stay-at-home trade. And they have the move to cloud by Enterprise, and that has really pushed the stock to records, although we are seeing, as Myles said, a little bit of a give back right now.