February 13, 2020 / 9:51 PM / 6 days ago

CORRECTED-UPDATE 1-Nvidia forecasts revenue above estimates despite $100 mln coronavirus hit

(In penultimate paragraph, corrects date for end of fourth quarter to Jan. 26, not Dec. 31)

Feb 13 (Reuters) - Nvidia Corp on Thursday forecast first-quarter revenue above Wall Street expectations despite a hit of $100 million from the coronavirus outbreak, sending its shares up nearly 7% in extended trading.

The company, which reinforced expectations of a rebound in chip demand, is the second chipmaker after Qualcomm Inc to warn about a potential impact on its businesses due to the outbreak.

The virus has so far killed 1,367 people, infected about 60,000 people on the Chinese mainland and spread to at least 24 countries. It has led to lockdown of cities and factory closures that have disrupted supply chains.

The Santa Clara, California-based company said it expects current-quarter revenue of $3 billion, plus or minus 2%, the midpoint of which is above analysts’ expectation of $2.86 billion, according to IBES data from Refinitiv.

Revenue from Nvidia’s closely watched data center chips business rose 42.6% to $968 million in the fourth quarter, beating analysts’ estimate of $829 million, according to research firm FactSet.

Revenue from its gaming business, still the biggest contributor to sales, rose 56% to $1.49 billion, but fell short of analysts’ estimate of $1.52 billion, according to FactSet.

Total revenue in the quarter rose about 41% to $3.11 billion, above analysts’ estimate of $2.97 billion, according to IBES data from Refinitiv.

Nvidia’s net income rose to $950 million, or $1.53 per share, in the fourth-quarter ended Jan. 26, from $567 million, or 92 cents per share, a year earlier.

Excluding items, it earned $1.89 per share, above estimates of $1.69. (Reporting by Amal S in Bengaluru and Stephen Nellis in San Francisco; Editing by Sriraj Kalluvila)

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