Business, Graphics, Hardware, VR World

Nvidia Mistakenly Announces Quarterly Earnings, Full Report Tomorrow

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Someone inside of Nvidia’s [NASDAQ:NVDA] investor relations is probably having a really bad day today, following yesterday’s mistake regarding their earnings release where they mistakenly released the company’s preliminary earnings release internally to a group of 100 people, which potentially violates regulations set forth by the SEC that require any knowledge of earnings to be made public immediately if there is a possibility of that information going public. In order to be compliant, Nvidia wanted to prevent any of this preliminary earnings knowledge from reaching people before it reached the public. Nvidia did not actually email anyone outside of the company prior to a public release, but since I assume many of these people were outside of the financial structure of Nvidia they were forced to go public with the information that had been made known internally. While we don’t know who was responsible for yesterday’s earnings cockup, there’s no doubt that this is a HUGE mistake for a major semiconductor company and there will be a lot of questions asked once Nvidia releases their full earnings tomorrow along with an earnings call which may explain what happened, exactly.

In terms of Nvidia’s earnings themselves, the company reported for their fiscal first quarter of 2015, which is actually the first calendar quarter of 2014, earnings of $136 million on $1.1 billion in revenue, which is down sequentially from the fourth quarter where Nvidia is traditionally their strongest. As a result, it is expected to see that their revenue was down 4% quarter over quarter and profit down the same amount. In fact, it is actually really good to only take a 4% quarter over quarter reduction from your strongest quarter, most companies generally see a much larger decrease because of how big their third and fourth quarters are for their business. So, then, it comes as no surprise that when compared to the same quarter a year ago, Nvidia was actually up 16% in terms of revenue ($954 million last year vs. $1,102 this year) and 85% in terms of profitability, which is HUGE. Nvidia took in $77.9 million in profit in their first quarter last year, compared to $136 million this year which accounts for the 85% GAAP increase. Now, if you look at their non-GAAP EPS, then you’ll see that it is a slightly more moderated 61% increase, but even so, it indicates Nvidia is strong as ever, even with a fairly weak Tegra business.

GAAP EPS were $0.24, up 85% from $0.13 a year ago and down 4% from $0.25 in the previous quarter, and non-GAAP earnings were $0.29, up 61% from $0.18 and down 9% from $0.32 in the previous quarter. Nvidia also saw their gross margin grow to 54.8 % from the previous quarter’s 54.1 % to the same quarter a year ago’s 54.3.

Nvidia stated, “This press release is being issued because a preliminary draft of the company’s financial results for the first quarter of fiscal 2015 was inadvertently emailed to an internal distribution list of about 100 individuals. Because of this error, these results are being provided to the market in advance of trading in NVIDIA stock today as a precaution.”

While we do not yet have the CFO commentary or any information from the earnings call since neither have actually happened yet, we will have to leave our analysis of Nvidia’s individual business units until those happen or are released. NVIDIA will provide its full results for the first quarter, along with additional commentary and a financial outlook, on Thursday, May 8, 2014, as initially scheduled. Perhaps, then, Nvidia’s stock will do a little better even though yesterday’s preliminary mistaken release pretty much beat most people’s expectations and drove t stock up about 1% during trading. However, the stock gave up most of that over the course of the trading day yesterday and only earned back a few pennies today. Such has been the case for Nvidia’s stock in the past and perhaps tomorrow’s earnings call and full earnings release and outlook will help the stock to finally break $20 for the first time in over 3 years.

  • Ti KaPao

    this is not a mistake it is deliberate, they are announcing slow gain (but certain) in need for new income through new or current stakeholders, looks like too much money was spent in the RnD department for future investment, and too much stuffing around with the Titan Z and now a leak of an upcoming of their next gen GPU which will cost less than half of the Titan Z with almost same (15%-20% slower) performance at 28nm node.

    Overall this is just a stunt to observe their strength within the shares market, the more people (shares/investors) that jumps in nvidias boat the better for their account and RnD, however they need to change their marketing strategy which is the very reason for the existence of this article.

    It is only because it is foreseeable that china production is at an all time low meaning nvidia are not expecting to make enough sales to meet their quota for a sustainable livelihood, more shares/investors will assure their present stability.

    Meaning high hopes for the next 2 gen GPU tech if they stick to their roadmaps accordingly and hopefully at 16nm node with stack memory, Dx12, pcie 4.0 by mid 2016.

    • MrGiggleNutz

      I’m sure an investigation will be triggered over this to make sure those 100 on the receiving end of the email didn’t benefit from this mistake. I don’t think this was deliberate because all it would take is one of those individuals to use this information to their advantage to cause the SEC to step in.

      • Ti KaPao

        if it is a healthy exposition it should receive interest towards investors regardless.

        expect more investors and on going higher share profits, it is an expectation and probably a certainty.

        since their shares looking pretty firm the purpose is to advertise a healthy market, technically they had not dictate nor had they regulate the market at some ones lost for another ones gain, they just flexed their ego and that is a good move.

        sadly the Titan z is a sad joke, some moron within the marketing department had one too many.

        Its as if Jen-Hsun Huang is using Steve Wozniak strategy to sell an over price junk (thats apple for ya) trying to make a new niche. sadly though those who has a work station usually spend their time doing just that, and having a good perv at some porn, nothing more nothing less, they dont need a Titan it is impractical for their profession, any right minded people would use the Quadro.

        Be-aware Jen-Hsun Huang, you have too many yes men as staff, this is the next chapter of the emperor’s new clothe, if otherwise you made a very silly decision with the Titan z.