Chip giant Huida reported on Thursday, November 15, that he reported a low profit in the third quarter after the end of trading. Custom EPS was $ 1.84, market expectations were $ 1.71-1.92, revenue was $ 3.18 billion, weaker than market expectations of $ 3.24 billion, adjusted gross margin was 61% market expectations 62.8%.
The company raised its quarterly dividend to 16 cents / share, an increase of 15 cents per share, but less than the market expectations of 17 cents per share. The company plans to return an additional $ 3 billion to shareholders by the end of 2020 (natural year 2019). In November of this year, the board of directors approved an additional $ 7 billion for shareholder reserves.
The company expects revenue for the next fiscal quarter to be $ 2.7 billion, with a positive and negative correction of 2%, which is even lower than the market expectations of $ 3.4 billion. The financial report believes that recent business results show that after the digital noise period, the list of channels will be interrupted, which will be corrected.
Huida's share price dropped by more than 16% after closing, falling below $ 170. If that decline continues tomorrow, it will wipe out all the benefits in the past year. Other chips also fell, AMD fell 3.6%, Micron dropped 1.7%, TSMC fell 1.7% in the US, Intel dropped 1.0% and Apple dropped by 0.5% .
The analysis pointed out that, like most technologies, Huida fell deep in October, and Nasdak also experienced the worst monthly performance since 2008. Since its closing on Wednesday, Nvidia has increased by more than 1% this year. In the first two years of the company, "Vracar Action" was called, which in 2016 grew by 224%, and in 2017 it increased by 81%.
However, compared to the same period last year, Huida's performance is still bullish. Revenue from the third quarter rose by 21% compared to the annual annual growth rate, and the gross profit margin according to GAAP was 60.4%, which is more than 59.5% last year, while the gross profit margin against non- GAAP was 61%, which was better than 59.7% in the same period last year. .
As for business, the main source of revenue: the business chip operating income of $ 1.76 billion, lower than the expected $ 1.89 billion, the second-largest source of revenue: the Business Center for operating revenues of $ 792 million, also lower than the expected 821 million dollars. However, operating income from business visualization was $ 305 million, exceeding expectations of $ 284 million.
Investigative company Suskuehanna analyst Christopher Rolland said before earnings reports that Huida's first-quarter performance performance would probably disappoint Wall Street again and upgrade the rating from neutral to "positive," but the target price was lowered from $ 250 to $ 230. .
In the second quarter of this year, Huida's revenue growth rate increased by 40%, and the annual growth rate of net profit rose by 89% to $ 1.1 billion, which exceeds the expectations of analysts. However, the company expects third quarter revenue of $ 3.25 billion, which is 2% below expectations of $ 3.34 billion.
In the second quarter, the quarterly earnings of the mining company's digital currency dropped 70% to 116 million dollars. CFO Colette Kres at that time said that reducing the prices of digital currencies is expected to be "ignored" in the future.
Huida competitor AMD announced its third quarterly report as early as late October, with profits slightly higher than expected, but its operating income was lower than expected, while revenues and revenues fell compared to the second quarter. In market expectations, after the market it fell by 20%.
In mid-September, Founder and Chief Executive Officer Huida Ren Huun spoke almost two hours of introductory speech at the GPU Technology Conference in Tokyo, which emphasized the focus of Huida's business over the next 10 years: greater computing power and deep learning. GPU and Frame, Automation and Robotics, Intelligent Medical Device Solutions:
In his speech, he mentioned that 54% of the world's top 500 supercomputers came from NVIDIA's architecture and GPU. Of the first 7 supercomputers in the world, 5 rely on Fida to complete massive calculations. Undoubtedly, Huida's GPUs have reached the point of detonation.
This point of detonation means that Huida can stimulate the accumulation of computing power in deep learning and data centers, combined with the research of the autopilot system and artificial intelligence that are already working, to enter or deepen multiple fields, such as Industrial Automation, Production, Robotics, Medical Equipment etc.
Since August, chip actions have not been carried out, but also in other sectors, mainly because investors have doubts about the market demand in the context of the global trade situation. Both Morgan Stanley and Goldman Sachs argued that the risk-and-revenue ratio of US chips dropped to the worst in the third year, and hot actions such as AMD and Huid clearly entered the preoccupation zone.