Categories Earnings, Technology

Nvidia Q2 earnings, revenue drop but beat estimates; stock gains 6%

Semiconductor firm Nvidia Corporation (NASDAQ: NVDA) reported lower earnings and revenues for the second quarter. The results, however, topped the Street view. The stock moved up about 6% during Thursday’s after-hours session, following the announcement.

Adjusted earnings came in at $1.24 per share in the second quarter, a decrease of 36% from the corresponding period of last year. Wall Street analysts had forecast a lower number. Unadjusted profit was $552 million or $0.90 per share, compared to $1.1 billion or $1.76 per share a year ago.

Nvidia Q2 profit, revenue drop but beat estimates; stock gains 6%

Dragging down the bottom-line, revenues dropped 17% year-over-year to $2.58 billion during the quarter, which however exceeded the market’s projection. The weakness in the top-line reflects the ongoing slump in the GPU and data-center businesses.

Jensen Huang, CEO of Nvidia, said, “We achieved sequential growth across our platforms. Real-time ray tracing is the most important graphics innovation in a decade. Adoption has reached a tipping point, with NVIDIA RTX leading the way.”

Also see: NVIDIA stock surges on Q1 earnings beat

Looking ahead to the third quarter, the management expects revenues of $2.90 billion, plus or minus 2%. Adjusted gross margin is expected to be 62.5%, plus or minus 50 basis points. Adjusted operating expense is forecast to be approximately $765 million.

nvidia stock
Image by JacekAbramowicz on Pixabay

The company said it will pay the next quarterly cash dividend of $0.16 per share on September 20, 2019, to all shareholders of record on August 29, 2019.  It will resume repurchasing stocks after the completion of the recently announced acquisition of Mellanox Technologies, which is the first priority as far as capital spending is concerned. The regulatory approval process for the transaction is progressing as planned. It is expected to close by the end of this calendar year.

Related: Nvidia Q1 2020 Earnings Conference Call Transcript

Nvidia’s shares are yet to fully recover after falling from the peak more than a year ago. The stock gained about 10% since the beginning of the year but continues to underperform the semiconductor index of S&P. It closed Thursday’s regular trading session lower but gained sharply during the extended session.

Also Read:  Nike stock falls on cost concerns, despite Q1 earnings beat

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

BlackBerry (BB) likely to report weak Q4 earnings on March 31

BlackBerry Limited (NYSE: BB) is slated to report its fourth-quarter 2020 earnings results on Tuesday, March 31, after the market closes. The top line will be benefited by BlackBerry Cylance

Companies that are working on the coronavirus vaccine

The coronavirus pandemic continues to plague the world with over 500,000 cases reported globally and over 82,000 cases in the US alone. As the world grapples with the outbreak, several

Altimmune (ALT) reports FY19 results; announces vaccine candidate for COVID-19

Altimmune Inc. (NASDAQ: ALT) reported its earnings results for fiscal-year 2019. Revenues totaled $5.8 million compared to $10.3 million last year. The drop in revenues was caused by lower billings

2 thoughts on “Nvidia Q2 earnings, revenue drop but beat estimates; stock gains 6%

Comments are closed.