GAAP earnings per share on the other hand tanked 79 percent versus the previous quarter and 77 percent year-over-year but this is primarily due to a writedown of 19 cents per share on NVIDIA's Icera modem operations, which it failed to sell to another firm, as well as a 2 cents per share charge related to the recall of NVIDIA Shield tablets due to battery overheating issues.
For the present quarter, NVIDIA anticipates revenue of $1.18 billion, plus or minus two percent. The firm is also beating the drum about its NVIDIA Drive PX platform, stating it's working together with 50 firms in their autonomous driving efforts. NVIDIA says automotive revenue as well as gaming hardware revenue continued to grow strongly from a year earlier.
The earnings of 34 cents per share are significantly better than anticipated, the mean estimate of financial analysts covering NVIDIA came in at just 11 cents per share. The forecast of $1.18 revenue for the current quarter is also significantly higher than the analyst estimate of $1.1 billion.
NVIDIA (NASDAQ: NVDA) today reported revenue for the second quarter ended July 26, 2015, of $1.153 billion, up 5 percent from $1.103 billion a year earlier, and up marginally from $1.151 billion the previous quarter.
GAAP earnings per diluted share for the quarter were $0.05. This includes a charge of $0.19 per diluted share in connection with the company's decision to wind down its Icera® modem operations, after a viable buyer failed to emerge. It also includes a charge of $0.02 per diluted share related to the NVIDIA SHIELD™ tablet recall.
Non-GAAP earnings per diluted share were $0.34, up 13 percent from $0.30 a year earlier, and up 3 percent from $0.33 in the previous quarter.
"Our strong performance in a challenging environment reflects NVIDIA's success in creating specialized visual computing platforms targeted at important growth markets," said Jen-Hsun Huang, president and chief executive officer of NVIDIA.
"Our gaming platforms continue to be fueled by growth in multiple vectors -- new technologies like 4K and VR, blockbuster games with amazing production values, and increasing worldwide fan engagement in e-sports. We're working with more than 50 companies that are exploring NVIDIA DRIVE to enable self-driving cars. And our GPU-accelerated data center platform continues to make great strides in some of today's most important computing initiatives -- cloud-based virtualization and high performance computing applications like deep learning.
"Visual computing continues to grow in importance, making our growth opportunities more exciting than ever," he said.
During the second quarter, NVIDIA paid $52 million in cash dividends and $400 million in share repurchases -- returning an aggregate of $452 million to shareholders. In the year's first half, the company returned an aggregate of $551 million to shareholders.
NVIDIA will pay its next quarterly cash dividend of $0.0975 per share on September 11, 2015, to all shareholders of record on August 20, 2015.