How so? Gaming results for Q2 may be disappointing, but it could be a different story with its data center results. The latest numbers from Nvidia could help to back this view. However, as I argued at the start of August, its strength in some areas (like cloud computing), could outweigh weakness in other areas (like gaming). The preliminary earnings for NVDA stock helped to briefly give credence to the bearish view that, as economic growth slows down compared to the boom times of 2021, the company’s own growth will take a big hit. Looking more closely at recent data center results, it’s too soon to say the company’s overall prospects have taken a turn for the worse. Like our charts? Explore example interactive dashboards and create your own.Nevertheless, there is a key bright spot: its data center segment. What’s behind Trefis? See How It’s Powering New Collaboration and What-Ifsįor CFOs and Finance Teams | Product, R&D, and Marketing Teams It grew slightly from 33.2x in Q2 fiscal 2019 to 33.9x in Q2 fiscal 2020, based on trailing twelve months adjusted EPS.

The P/E Multiple for Nvidia declined in fiscal 2019 but recovered in the beginning of fiscal 2020.

Price To Earnings Multiple For Nvidia Grew 2% Since Q2 Fiscal 2019

Shares outstanding declined from 625 million in Q2 fiscal 2019 to 616 million in Q2 fiscal 2020.

This can be attributed to lower adjusted net income, partly offset by modest decline in no.

Adjusted EPS declined from $1.94 in Q2 fiscal 2019 to $1.24 in Q2 fiscal 2020.

#2.2 Adjusted EPS Declined 36% Led By Lower Revenues And Margins Non-GAAP Adjustments as % of revenue increased from 3.5% in Q2 fiscal 2019 to 8.1% in Q2 fiscal 2020.

Effective Tax Rate increased from 6.7% in Q2 fiscal 2019 to 8.9% in Q2 fiscal 2020.

Interest & Other Expenses as % of revenue declined from -0.7% in Q2 fiscal 2019 to -1.4% in Q2 fiscal 2020.

SG&A as % of revenue increased from 7.6% in Q2 fiscal 2019 to 10.3% in Q2 fiscal 2020.R&D as % of revenue increased from 18.6% in Q2 fiscal 2019 to 27.3% in Q2 fiscal 2020.COGS as % of revenue increased from 36.8% in Q2 fiscal 2019 to 40.2% in Q2 fiscal 2020.#2.1 Total Costs Grew 5% Primarily Led By Higher R&D Expenses. Adjusted net income margin declined from 38.7% in Q2 fiscal 2019 to around 29.5% in Q2 fiscal 2020.This can be attributed to lower revenues and contraction in adjusted net income margin.Nvidia’s adjusted net income declined from $1.2 billion in Q2 fiscal 2019, to $0.8 billion in Q2 fiscal 2020.

Adjusted Net Income Declined By 37% Since Q2 Fiscal 2019, Led By Lower Margins

Nvda earnings date q2 2020