Nvidia's posts higher earnings, forecast misses
By Noel Randewich
SAN FRANCISCO (Reuters) - Nvidia posted higher fiscal fourth-quarter earnings but its outlook for the current quarter missed expectations as the graphics chipmaker faces more competition in a growing tablet market where it hopes to offset soft PC demand.
With PC sales losing ground to tablets, Nvidia is betting on its graphics expertise to make high-performance processors for mobile devices.
The company, whose core business is graphics chips for PCs, has made inroads in tablets but competition from larger rival Qualcomm has Wall Street concerned the company may struggle to keep its mobile business growing fast.
Fourth-quarter net income was $174 million, or 28 cents a share, up from $116 million, or 19 cents a share, in the same quarter last year. Analysts on average expected 24 cents, according to Thomson Reuters I/B/E/S.
The Santa Clara, California, chipmaker reported fourth-quarter revenue of $1.107 billion, up from $953 million in the year-ago quarter.
It said revenue in the current quarter would be $940 million, plus or minus 2 percent.
Analysts were expecting revenue of $1.102 billion for the quarter ended in January and $1.067 billion for the quarter ending in April.
Shares of Nvidia were unchanged in extended trade after closing down 0.48 percent at $12.37 on Nasdaq.
(Reporting by Noel Randewich; Editing by Bob Burgdorfer and Leslie Gevirtz)
© Thomson Reuters 2016 All rights reserved.