No. of Recommendations: 2
NVDA, on 13 Feb, shares rose in after hours trading, from $270/share to $289. The price was stable on 14 Feb, Friday. A gain of $19 is about 7%, on volume of 26M (avg vol is 8M). A lot of traders were 'selling the news'?

The market liked the report.

June 2019 had a stock price low of 132.60 (Yahoo finance). a 120% increase in 8 months.
The all time high was Oct 2018, at about $290, so NVDA has made the round trip.

NVDA Q4 2020 earnings report released 13 Feb 2020.
as usual, this is information about 2019.

Numbers are in Millions.
Non-GAAP		Q1  		Q2		Q3		Q4
Revenue 2017 $1,305.00 $1,428.00 $2,004.00 $2,173.00
2018 $1,937.00 $2,230.00 $2,636.00 $2,911.00
2019 $3,207.00 $3,123.00 $3,181.00 $2,205.00
2020 $2,220.00 $2,579.00 $3,014.00 $3,105.00

guidance* for 2021 3,000.00

Revenue is up 41 percent from $2.21 billion a year earlier, and up 3 percent from $3.01 billion in the previous quarter.
Revenue is going the right direction.

*Coronavirus. NVDA adjusted the Q1 2021 guidance downward, due to expectations of adverse effects of the coronavirus.

Gross Margins
Non-GAAP		Q1  	Q2	Q3	Q4
Gross margin 2017 58.60% 58.10% 59.20% 60.20%
2018 59.60% 58.60% 59.70% 62.10%
2019 64.50% 63.30% 61.00% 56.00%
2020 59.00% 60.10% 64.10% 65.40%

Gross Margins were maintained in the high 50% to low 60%, reached a one time low of 56% Q4 2019, and since then have steadily increased during 2020, to an all time high 65.4% in Q4 2020, the most recent quarter.

Non-GAAP earnings per diluted share were $1.89, up 136 percent from $0.80 a year earlier, and up 6 percent from $1.78 in the previous quarter.

Non-GAAP				Q1  	Q2	Q3	Q4
Diluted earnings per share 2017 $0.46 $0.53 $0.94 $1.13
2018 $0.85 $1.01 $1.33 $1.72
2019 $1.98 $1.76 $1.84 $0.80
2020 $0.88 $1.24 $1.78 $1.89

Earnings per diluted share are going the right direction.

NVDA continues to pay a tiny dividend ... $0.16/share each quarter, raised it $0.01 a couple quarters ago. The annual yield is now $0.64/$289 .. I get 0.2%.

NVDA had been repurchasing shares at 1B or so per year for the last couple years.
BUT, in March 2019, NVDA agreed to acquire Mellanox, and suspended the share repurchase activities until Mellanox acquisition is completed - supposedly in the first half of 2020.

They expect Mellanox to be immediately accretive to the NON GAAP numbers. NVDA's high efficiency software solutions are supported by NVDA's high efficiency chips/chipsets. Mellanox builds high efficiency connections between chips/chipsets, Ethernet connections, HPC (High Performance Computing) centers, etc. NVDA and Mellanox have cooperated many times in the past.

Shares outstanding has been growing?
Inspite of the repurchases, NVDA's shares outstanding in 2005 was 527M, and 2019 is 625M - a 100M increase, over 15 years.

GeForce NOW. NVDA has been working on high efficiency ray tracing and bringing that experience to gaming. GeForce NOW is an online, monthly subscription gaming service.
$0 for free version, $4.99 for full service,

GeForce NOW is NVDA's plan to get on the 'auto pilot' business plan.
This author explains that when Microsoft, Adobe, Autodesk, etc revamped their business plan to force their users to a monthly subscription, the business profits increased.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.