Nvidia 3Q earnings more than double

Nvidia third-quarter net income more than doubles as chip demand rises

Associated Press

SANTA CLARA, Calif. (AP) -- Nvidia Corp. on Thursday said its fiscal third-quarter earnings more than doubled as demand for its computer chips climbed.

Shares of Nvidia, whose adjusted net income beat analyst estimates, climbed 4 percent in after-hours trading.

The company earned $178.3 million, or 29 cents per share, for the three months that ended Oct. 30. This compares with $84.9 million, or 15 cents per share, in the year-ago quarter.

Excluding one-time items, Nvidia earned 35 cents per share — 8 cents higher than what analysts surveyed by FactSet expected.

Revenue rose 26 percent to $1.07 billion, nearly matching analyst estimates for $1.06 billion.

Jen-Hsun Huang, a company co-founder who has been its CEO since 1993, said sales of its graphics processors grew as more gamers and professional users snapped up laptops that use its chips. The company's Tegra chip, which goes into smartphones and computer tablets, is also gaining ground as it hits shelves in a growing number of mobile devices. The company released the latest version of this chip, Tegra 3, during the quarter.

"With Tegra 3 phone wins well ahead of Tegra 2's pace, we're expecting strong growth in the year ahead," Huang said.

In the current quarter, Nvidia predicted revenue will be mostly flat, or rise or fall as much as two percent compared with the third quarter. This means the company's revenue could be between $1.05 billion and $1.09 billion.

Analysts have been expecting $1.06 billion in fourth-quarter revenue.

Nvidia's shares rose 63 cents, or 4.4 percent, to $15.05 in extended trading. The stock finished regular trading up 15 cents at $14.47.

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