Upcoming AWS Coverage on Cirrus Logic Post-Earnings Results

LONDON, UK / ACCESSWIRE / May 25, 2017 / Active Wall St. announces its post-earnings coverage on NVIDIA Corp. (NASDAQ: NVDA). The Company posted its first quarter fiscal 2018 financial results on May 09, 2017. The graphics specialist outperformed top- and bottom-line expectations. Register with us now for your free membership at:

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One of NVIDIA's competitors within the Semiconductor - Specialized space, Cirrus Logic, Inc. (NASDAQ: CRUS), disclosed on May 03, 2017, its complete financial results for Q4 FY17 and full FY17, which on ended March 25, 2017, as well as the Company's current business outlook.. AWS will be initiating a research report on Cirrus Logic in the coming days.

Today, AWS is promoting its earnings coverage on NVDA; touching on CRUS. Get our free coverage by signing up to:

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Earnings Reviewed

NVIDIA reported revenue for the first quarter ended April 30, 2017, of $1.94 billion, up 48% compared to $1.30 billion in Q1 FY17. Growth was driven by GPUs for gaming, datacenter, and professional visualization, as well as for Tegra® automotive systems. The Company's revenue numbers topped analysts' consensus estimates of $1.91 billion.

For Q1 FY18, NVIDIA's GAAP gross margin was 59.4% and non-GAAP gross margin was 59.6%. These reflected a sequential decrease associated with lower licensing revenue from Intel. The Company's GAAP operating income was $554 million in the reported quarter, up 126% on a y-o-y basis, while non-GAAP operating income was $637 million, up 98% on a y-o-y basis.

NVIDIA's GAAP earnings per diluted share for Q1 FY18 were $0.79, up 126% from $0.35 a year ago. The Company's non-GAAP earnings per diluted share were $0.85, up 85% from $0.46 a year earlier. NVIDIA's earnings numbers exceeded Wall Street's expectations for earnings of $0.66 per share.

Segment Results

During Q1 FY18, NVIDIA's GPU business revenue was $1.56 billion, up 45% on y-o-y basis, led by strength across all platforms, including exceptional growth from datacenter and gaming platforms. GeForce GPU gaming results were led by continued strong adoption of the Company's latest Pascal? architecture. Datacenter reported record revenue of $409 million, up 186% on y-o-y basis.

NVIDIA's Tegra processor business revenue, which included gaming development platforms and services, was $332 million for Q1 FY18, up 108% on a y-o-y basis. The segment's revenue included record automotive revenue of $140 million, primarily from infotainment modules, which was up 24% on a y-o-y basis. Revenue from NVIDIA's patent license agreement with Intel was $43 million, reflecting the remaining revenue for this agreement.

Capital Return

During Q1 FY18, NVIDIA paid $82 million in cash dividends. For fiscal 2018, the Company intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases.

Since the restart of its capital return program in Q4 FY13, NVIDIA has returned $4.10 billion to shareholders. This return represents 85% of its cumulative free cash flow for FY13 through Q1 FY18.

Balance Sheet and Cash Flow

NVIDIA's cash, cash equivalents, and marketable securities at the end of Q1 FY18 were $6.21 billion compared with $6.80 billion at the end of the prior quarter. The sequential decrease in cash was primarily related to principal payments for early exercises of its convertible notes.

The Company's accounts receivable at the end of Q1 FY18 was $976 million compared with $826 million in the prior quarter. DSO at quarter-end was 46 days, up from 35 days in Q4 FY17. NVIDIA's inventory at the end of the reported quarter was $821 million, up from $794 million in the prior quarter.

During Q1 FY18, NVIDIA's cash flow from operating activities was $282 million, down from $721 million in the prior quarter. The sequential decrease was primarily due to a decline in net income and changes in working capital. The Company recorded free cash flow of $229 million in the reported quarter compared with $669 million in the previous quarter.

Outlook

For Q2 FY18, NVIDIA is expecting revenue to be $1.95 billion, plus or minus 2%. The Company expects GAAP and non-GAAP gross margins to be in the band of 58.4% and 58.6%, respectively, plus or minus 50 basis points. NVIDIA is estimating Capital expenditures to be approximately $55 million to $65 million.

Stock Performance

On Wednesday, May 24, 2017, the stock closed the trading session at $138.57, rising 1.12% from its previous closing price of $137.03. A total volume of 20.41 million shares have exchanged hands, which was higher than the 3-month average volume of 16.68 million shares. NVIDIA's stock price soared 32.30% in the last month, 37.89% in the past three months, and 49.03% in the previous six months. Furthermore, since the start of the year, shares of the Company have surged 29.82%. The stock is trading at a PE ratio of 46.63 and has a dividend yield of 0.40%.

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SOURCE: Active Wall Street