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Earnings Results

Aug. 15, 2019, 5:10 p.m. EDT

Nvidia shares rally on earnings beat

Gaming sales top Street estimates, but data-center sales don’t

By Wallace Witkowski, MarketWatch

Nvidia Corp.

Nvidia Corp. shares rose in the extended session Thursday after the chip maker topped Wall Street expectations for the quarter even as data-center sales came in weaker than expected.

Nvidia (NAS:NVDA)  shares rose 6.3% after hours, following a 0.9% decline in the regular session to close at $148.77. In comparison, the PHLX Semiconductor Index (NASDAQ:SOX) fell slightly, the S&P 500 index (S&P:SPX) rose 0.2%, and the tech-heavy Nasdaq Composite Index (AMERICAN:COMP) was about flat.

The company reported second-quarter net income of $552 million, or 90 cents a share, compared with $947 million, or $1.54 a share, in the year-ago period. Adjusted earnings were $1.24 a share.

Revenue declined to $2.58 billion from $3.12 billion in the year-ago quarter.

Analysts surveyed by FactSet had forecast earnings of $1.15 a share on revenue of $2.55 billion.

Revenue from gaming, Nvidia’s largest business, declined 27% to $1.31 billion, while analysts were expecting $1.3 billion. Data-center revenue slipped 14% from a year ago to $655 million while Wall Street was expecting $668.5 million.

Nvidia expects third-quarter revenue of $2.84 billion to $2.96 billion, while analysts expect $2.98 billion.

Link to MarketWatch's Slice.