NVIDIA Corporation (NASDAQ:NVDA) reduced its outlook for the current quarter in reaction to lower profit for the fourth quarter. The company reported the net profit of $116 million or earnings of $0.19 per share as compared to net income of $171.7 million or earnings of $0.29 per share for the same period last year.
The company’s revenue however increased to $953.2 million for the quarter as compared to $886.4 million in the prior year. Analysts were hoping the company to report the revenue of $950.6 million with earnings of $0.20 per share.
In reaction to reduced profitability for the fourth quarter the company has reduced its outlook for the current quarter and now is expecting the revenue within the range of $900 to $930 million, analysts on the other hand project the total sales to be around $944 million.
According to the company’s Chief Financial Officer Karen Burns, the reasons behind the company’s reduced profit were global hard disk drive shortage and decline of Tegra 2 mobile business.
The company’s shares gained 1.73 percent to close at $15.45 in its last trading session. Traded volume stood at 47.21 million shares as compared to its average traded volume figure of 14.55 million shares per day. The share price is trading at price to earnings of 17.40 times which is higher if compared to its competitors such AMD with P/E of 11.62 while Intel is trading a price to earnings of 11.19 times.Previous Post » GM Reports Highest Ever Profit