NVIDIA just announced huge revenue and record earnings for its fiscal quarter Q3 2017. Quarterly revenue came in at $2 billion, up by 54 percent compared to the previous year, overall income jumped to 120 percent at 542 million.
NVIDIA (NASDAQ: NVDA) today reported revenue for the third quarter ended October 30, 2016, of $2.00 billion, up 54 percent from $1.30 billion a year earlier, and up 40 percent from $1.43 billion in the previous quarter.
GAAP earnings per diluted share for the quarter were $0.83, up 89 percent from $0.44 a year ago and up 102 percent from $0.41 in the previous quarter. Non-GAAP earnings per diluted share were $0.94, up 104 percent from $0.46 a year earlier and up 77 percent from $0.53 in the previous quarter.
"We had a breakout quarter - record revenue, record margins and record earnings were driven by strength across all product lines," said Jen-Hsun Huang, founder and chief executive officer, NVIDIA. "Our new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars and datacenter AI computing.
"We have invested years of work and billions of dollars to advance deep learning. Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM. GPU deep learning has sparked a wave of innovations that will usher in the next era of computing," he said.
Capital Return
During the first nine months of fiscal 2017, NVIDIA paid $509 million in share repurchases and $185 million in cash dividends. As a result, the company has returned an aggregate of $694 million to shareholders in the first nine months of the fiscal year. The company intends to return $1.0 billion to shareholders in fiscal 2017.
For fiscal 2018, NVIDIA intends to return $1.25 billion to shareholders through ongoing quarterly cash dividends and share repurchases. The company's board of directors has authorized an additional $2.00 billion under the company's stock repurchase program for a total of $2.96 billion available through the end of December 2020.
The company announced a 22 percent increase in its quarterly cash dividend to $0.14 per share from $0.115 per share, to be paid with its next quarterly cash dividend on December 19, 2016, to all shareholders of record on November 28, 2016.
Q3 FY2017 Summary
| GAAP | |||||||||||||
| ($ in millions except earnings per share) | Q3 FY17 | Q2 FY17 | Q3 FY16 | Q/Q | Y/Y | ||||||||
| Revenue | $ | 2,004 | $ | 1,428 | $ | 1,305 | Up 40% | Up 54% | |||||
| Gross margin | 59.0% | 57.9% | 56.3% | Up 110 bps | Up 270 bps | ||||||||
| Operating expenses | $ | 544 | $ | 509 | $ | 489 | Up 7% | Up 11% | |||||
| Operating income | $ | 639 | $ | 317 | $ | 245 | Up 102% | Up 161% | |||||
| Net income* | $ | 542 | $ | 261 | $ | 246 | Up 108% | Up 120% | |||||
| Diluted earnings per share* | $ | 0.83 | $ | 0.41 | $ | 0.44 | Up 102% | Up 89% | |||||
| Non-GAAP | |||||||||||||
| ($ in millions except earnings per share) | Q3 FY17 | Q2 FY17 | Q3 FY16 | Q/Q | Y/Y | ||||||||
| Revenue | $ | 2,004 | $ | 1,428 | $ | 1,305 | Up 40% | Up 54% | |||||
| Gross margin | 59.2% | 58.1% | 56.5% | Up 110 bps | Up 270 bps | ||||||||
| Operating expenses | $ | 478 | $ | 448 | $ | 430 | Up 7% | Up 11% | |||||
| Operating income | $ | 708 | $ | 382 | $ | 308 | Up 85% | Up 130% | |||||
| Net income | $ | 570 | $ | 313 | $ | 255 | Up 82% | Up 124% | |||||
| Diluted earnings per share | $ | 0.94 | $ | 0.53 | $ | 0.46 | Up 77% | Up 104% | |||||
* In the third quarter of fiscal 2017, NVIDIA adopted a new accounting standard (ASU 2016-09), which requires adjustments to be reflected beginning in fiscal 2017, including all fiscal quarters within the year. The primary impact of adoption was the recognition of excess tax benefits in the provision for income taxes rather than paid-in capital on the balance sheet. Adoption of the new standard resulted in a GAAP diluted earnings per share benefit of $0.02 and $0.01 for the first and second quarters of fiscal 2017, respectively.
NVIDIA's outlook for the fourth quarter of fiscal 2017 is as follows:
Third Quarter Fiscal 2017 Highlights
Gaming:
Datacenter:
Automotive:
Nvidia fiscal quarter Q3 2017 numbers show massive gains