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The Nvidia result indicates a decline in sales towards the end of the year

Nvidia Corp. After four quarters of declines on Thursday afternoon, the company forecasted a return to revenue growth and exceeded estimates for quarterly results.


NVDA, + 0.58%

shares fluctuated between gains and losses after the release of the report, rising less than 1% lately. This could be disappointing for option traders who had hoped for a big turnaround.

For the fourth quarter, Nvidia expects revenue of $ 2.89 to $ 3.01 billion, compared to $ 2.21

billion a year earlier, ending four quarters of its revenue decline. However, analysts had predicted a little more with a sales consensus of $ 3.07 billion.

Nvidia triggers the current phase of quarterly revenue declines in its fourth quarter a year ago. Weak demand from China and a sudden decline in data center revenue growth.

These declines continued in the third fiscal quarter, although they approached break-even than in previous periods. The company reported net income of $ 899 million or $ 1.45 per share for the third quarter, compared to $ 1.23 billion or $ 1.97 per share for the same period last year. Adjusted earnings were $ 1.78 per share.

Revenues decreased from $ 3.18 billion in the year-ago quarter to $ 3.01 billion. Analysts surveyed by FactSet forecast earnings of $ 1.58 for revenues of $ 2.92 billion.

Read: When will Nvidia launch a new data center product?

Nvidia's second largest business, Datacenter, saw its first quarter revenue decline nearly 10% year-on-year and almost 14% in the second quarter. In the third quarter, they fell 8% to $ 726 million, below the $ 759.1 million Wall Street consensus forecast. Gambling revenue, Nvidia's largest business, declined 6% to $ 1.66 billion, while Wall Street had expected a decline of nearly 13% to $ 1.54 billion. In comparison, the PHLX Semiconductor Index

SOX, -0.30%

ended 0.3% of the S & P 500 Index

SPX, + 0.08%

rose 0.1% and the technically advanced Nasdaq Composite Index

COMP, -0.04%

decreased less than 0.1%.

Of the 38 Nvidia-related analysts, 26 have a buy or overweight, nine have a hold and three have a sell or underweight with an average price target of $ 203.53 according to FactSet data.

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