Nvidia Shares Fall Despite Beating Earnings, Revenue Expectations

Nvidia Corp. (NVDA) shares were falling after-hours on Thursday despite posting first-quarter earnings and revenues that beat analyst expectations.

The red-hot graphics processors maker reported earnings per share of $1.98 on a GAAP basis compared to analysts’ consensus estimates of $1.46. Nvidia also reported revenue of $3.21 billion, compared to estimates of $2.89 billion.

TheStreet is hosting a live blog covering Nvidia’s first-quarter earnings. Please join us!

The company issued July quarter sales guidance of $3.1 billion (plus or minus 2%), above a consensus estimate of $2.95 billion. 

Nvidia’s gaming revenue, which accounts for more than half the company’s total revenue, rose 68% year over year to $1.72 billion, ahead of a $1.61 billion consensus.

“Gaming GPU growth was fueled by demand for the best experience while playing eSports, momentum of the Battle Royale genre, and AAA cinematic games,” the company said in a press release.

Datacenter revenue rose 71% to $701 million, beating a $656 million consensus. while Professional Visualization revenue rose 22% to $251 million, above a $248 million consensus, and automotive revenue grew 4% to $145 million, above a $140 million consensus.

The company will address its quarterly earnings during a conference call at 5 p.m. ET.

Nvidia shares were down 2% to $255.11 after-hours on Thursday. Since the beginning of the year, Nvidia stock has increased 36%.

Jim Cramer and the AAP team hold a position in Nvidia for their Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells NVDA? Learn more now.

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