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NVIDIA Corporation Stock Skyrockets On Earnings, Walt Disney Co Falls

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NVIDIA and Walt Disney released their latest earnings reports after closing bell tonight. NVIDIA posted earnings of 94 cents per share on $2 billion in sales, compared to the consensus estimates of 57 cents per share and $1.69 billion in revenue. In last year’s third quarter, the chip maker reported $1.31 billion in sales and non-GAAP earnings of 46 cents per share.

Walt Disney reported adjusted earnings of $1.10 per share on $13.1 billion in revenue, while the Street was looking for earnings of $1.16 per share and $13.5 billion in sales. In last year’s fourth fiscal quarter, the company posted adjusted earnings of $1.20 per share, diluted earnings of 95 cents per share and $13.5 billion in sales.

NVIDIA issues strong guidance

NVIDIA’s GAAP earnings surged 89% year over year to 83 cents per share from 41 cents per share, marking a new record. The chip maker’s gross margin also reached a new record at 59%, while its non-GAAP gross margin was 59.2%. Last year’s margins were 56.3% and 56.5%, respectively.

“We have invested years of work and billions of dollars to advance deep learning,” NVIDIA Founder and CEO Jen-Hsun Huang said in a statement. “Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM. GPU deep learning has sparked a wave of innovations that will usher in the next era of computing.”

For the fourth quarter, NVIDIA expects revenue to come in at $2.1 billion, plus or minus two percentage points, well ahead of the consensus at $1.69 billion. The company expects to return $1.25 billion to shareholders through dividends and share repurchases. It also boosted its quarterly cash dividend 22% to 14 cents per share.

Shares of NVIDIA soared in after-hours trade, climbing by as much as 12.38% to $73.16.

Walt Disney shares fall on miss

Walt Disney Co (DIS)

Walt Disney said its fourth quarter net income rose 10% year over year to $1.77 billion from $1.61 billion last year. Media Networks revenue declined 3% to $5.66 billion, while Parks and Resorts revenue grew 1% to $4.386 billion. Studio Entertainment revenue increased 2% to $1.8 billion, while Consumer Products & Interactive Media sales plunged 17% to $1.29 billion. Most of the decline in Consumer Products revenue was because Walt Disney discontinued its Infinity console game business.

Shares of Walt Disney tumbled by as much as 3.12% to $92 in after-hours trades.

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