Nvidia soars above Q2 targets with $977.2M in revenue, $0.23 EPS

Summary:Wall Street was expecting earnings of 13 cents per share on a revenue of $976.43 million.

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Nvidia shares were up slighly after the bell on Thursday thanks to a glowing second quarter earnings report.

See also: Earnings roundup: Marin Software, Fusion-io, SGI all mixed up on results | Groupon officially appoints Eric Lefkofsky as CEO amid Q2 earnings report

The mobile chip maker posted a net income of $96.4 million, or 16 cents per share (statement).

Non-GAAP earnings were 23 cents per share on a revenue of $977.2 million.

Wall Street was expecting earnings of 13 cents per share on a revenue of $976.43 million.

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With the big release of the Shield gaming portable that debuted at CES 2013 in January , CEO Jen-Hsun Huang reflected more on the hardware on the quarter in prepared remarks:

The GPU business continued to grow, driving our fourth consecutive quarter of record margins. We also began shipping GRID virtualized graphics, which puts the power of NVIDIA GPUs into the datacenter. We look forward to a strong second half, with new Tegra 4 devices coming to market, SHIELD moving beyond the U.S. and broader sampling of Project Logan, our next-generation Tegra processor, which brings Kepler, the world's most advanced GPU, to mobile.

For the third quarter, Wall Street is looking for revenue of $1.10 billion with non-GAAP earnings of 22 cents per share.

Nvidia is projecting its Q3 revenue to be $1.050 billion, plus or minus two percent.

UPDATE: During the quarterly call on Thursday, chief financial officer Karen Burns pointed toward some other growth strategies outside of the consumer gaming spectrum:

For visual computing, we are extending the technical leadership of our GPUs, growing GPU for accelerated computing and engaging the market with our...GPU servers for enterprise DDI. Great servers are in production by Cisco, Dell, HP and IBM.

For Tegra SoC, we are leveraging our core GPU investments to bring our visual computing leadership to industries that are being revolutionized by Android and ARM. We can make a contribution to many applications where a great GPU is desired.

Chris Evenden, director of investor relations, highlighted Citrix, noting that Nvidia has more than 150 proof of concept trials underway.

"Our focus is on gaming visualization and computer-generated growth in a turbulent market," Evenden remarked, adding Nvidia is "averaging [R&D] into new markets and applying GPUs to the cloud to accelerate the growth in the future."

Chart via Nvidia Investor Relations/Marketwire

Topics: Mobility, Hardware, Processors, Smartphones, Tablets

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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