NVIDIA's Earnings Show It's Acing the Comeback Game, but Stock Gain Is Scant on Light Outlook
NVIDIA (NASDAQ: NVDA) reported fiscal third-quarter 2020 results after the market closed on Thursday, Nov. 14. The graphics processing unit (GPU) specialist's revenue slipped 5% year over year to $3.01 billion and earnings per share adjusted for one-time items edged down 3% to $1.78.
Like the last three quarters, key numbers fell on a year-over-year basis, as expected. However, the good news is that, like last quarter, both the top and bottom lines were up sequentially and adjusted EPS easily beat the Wall Street consensus estimate, which was $1.57. Revenue also came in ahead of projections, as analysts were looking for $2.91 billion.
Shares edged up 0.9% in after-hours trading on Thursday. Why such a ho-hum initial response to a solid earnings beat? NVIDIA's fourth-quarter revenue and earnings guidance was lighter than expected.