Nvidia beats quarterly profit, revenue estimates; shares rise
(Reuters) – Nvidia Corp’s quarterly revenue and profit beat Wall Street estimates on Thursday, benefiting from a better-than-expected performance of its gaming and automotive chips business, sending shares up 6% in extended trading.
While Nvidia has entered into growth areas such as artificial intelligence and self-driving cars, its bread-and-butter business of selling chips that enhance video game graphics continues to be the biggest contributor to sales.
Revenue from gaming business fell 27% to $1.31 billion, but beat analysts’ estimate of $1.28 billion, according to five analysts polled by IBES Refinitiv.
The company said it expects third-quarter revenue of $2.9 billion, plus or minus 2%. Analysts on average were expecting revenue of $2.97 billion, according to IBES data from Refinitiv.
It reported quarterly adjusted gross margin of 60.1%, above expectations of 59.5%, according to FactSet data.
Nvidia’s net income fell to $552 million, or 90 cents per share, in the second-quarter ended July 28, from $1.1 billion, or $1.76 per share, a year earlier. Excluding items, it earned $1.24 per share.
Total revenue fell to $2.58 billion from $3.12 billion. Analysts on average were expecting a profit of $1.15 per share and revenue of $2.55 billion.
Reporting by Munsif Vengattil in Bengaluru; Editing by Arun Koyyur