NVIDIA (NVDA) Swings to Q1 Profit of $0.23/Share

NVIDIA Corp. (NASDAQ: NVDA) announced Thursday that it returned to profit in the first quarter, reversing a heavy loss in the same period last year as new products are being met with high consumer demand.

The maker of graphics processing units reported quarterly earnings of $137.6 million or 23 cents per share, compared to a a loss of $201.3 million or 37 cents per share in the year ago period. Analysts had been looking for 22 cents per share from the company in the three month period ended May 2.

Revenue jumped 51 percent from $664.2 million last year to $1.0 billion this year, also beating the market consensus of $985.88 million.

Gross margin for the company jumped to 45.6 percent in the period from 28.6 percent in the year-ago quarter.

"With our new Fermi-class GPUs in full production, NVIDIA’s key profit drivers are fully engaged," said Jen-Hsun Huang, NVIDIA CEO and president. "We shipped a few hundred thousand Fermi processors into strong consumer demand. Our Quadro business for workstations grew strongly, fueled by pent up demand from enterprise customers and new growth markets like video editing. And we had record revenue from Tesla processors for high-end servers. We anticipate continued strength in these businesses over the coming quarters."

Looking forward, the company sees sales in the second quarter dropping 3 percent to 5 percent and gross margin to increase to a range of 46 percent to 47 percent.

Shares of NVIDIA are trading down about 1% to $14.50 in the after-hours session.

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