Nvidia Q2 Profit Surges, But Stock Down On Weak Outlook

(RTTNews) - Nvidia Corp. (NVDA) Thursday reported a surge in its second-quarter profit, driven largely by a better-than-expected growth in revenues and strong margins. However, shares of the graphics chip maker slipped about 4 percent in extended session, as its revenue outlook for the current quarter fell short of Wall Street's estimates.

Santa Clara, California-based Nvidia's second-quarter profit surged to $1.10 billion or $1.76 per share from $583 million or $0.92 per share last year.

Adjusted earnings for the quarter increased to $1.21 billion or $1.94 per share from $638 million or $1.01 per share last year.

On average, 21 analysts estimated earnings of $1.66 per share for the quarter.

Nvidia's revenues for the quarter jumped 40 percent to $3.12 billion from $2.23 billion last year. Analysts had a consensus revenue estimate of $3.10 billion for the quarter.

Nvidia's gross margin for the quarter improved to 63.3 percent from 58.4 percent last year.

"Growth across every platform - AI, Gaming, Professional Visualization, self-driving cars - drove another great quarter," said Jensen Huang, founder and CEO of NVIDIA. "Fueling our growth is the widening gap between demand for computing across every industry and the limits reached by traditional computing. Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need."

Nvidia specializes in graphics processing units for PCs and video game consoles. The company has also turned its focus on producing computing chips for high-end cars.

Looking forward to the third quarter, the company expects revenues of $3.25 billion, plus or minus two percent. Analysts currently estimate revenues of $3.34 billion for the quarter.

NVDA closed Thursday's trading at $257.44, down $1.64 or 0.63% on the Nasdaq. The stock further slipped $8.62 or 3.35% in the after-hours trade.