NVIDIA Corporation (NASDAQ: NVDA) topped analysts’ expectations for revenue and profits in the third quarter of 2020. Shares inched up by 1% in aftermarket hours on Thursday.
Total revenue of $3.01 billion was down 5% from the same period a year ago but surpassed consensus estimates of $2.92 billion.
GAAP net income dropped more than 25% year-over-year to $899 million, or $1.45 per share. Adjusted net income fell 4% to $1.1 billion and adjusted EPS decreased 3% to $1.78 versus the year-ago quarter. Analysts had forecast adjusted EPS of $1.58.
Jensen Huang, founder and CEO said, “This quarter, we have laid the foundation for where AI will ultimately make the greatest impact. We extended our reach beyond the cloud, to the edge, where GPU-accelerated 5G, AI and IoT will revolutionize the world’s largest industries. We see strong data center growth ahead, driven by the rise of conversational AI and inference.”
For the fourth quarter of 2020, revenue is expected to be $2.95 billion, plus or minus 2%. The company expects to see strong sequential revenue growth in Data Center, which is likely to be offset by a seasonal decline in GeForce notebook GPUs and SoC modules for gaming platforms.
NVIDIA will pay its next quarterly cash dividend of $0.16 per share on December 20, 2019, to all shareholders of record on November 29, 2019.
NVIDIA stated that although it is possible to close the acquisition of Mellanox Technologies by the end of this calendar year, the company believes the closing is likely to occur in the early part of calendar 2020. The company will return to repurchasing its stock after the close of this acquisition.