Nvidia Q2 Earnings Beat Street, Shares Up 6%

(RTTNews) - Shares of Nvidia Corp. (NVDA) gained over 6% in extended session on Thursday after chip designer's second-quarter earnings beat Wall Street estimates, as did revenues.

Santa Clara, California-based Nvidia's second-quarter profit dropped to $552 million or $0.90 per share from $1.10 billion or $1.76 per share last year.

Adjusted earnings for the quarter dropped to $762 million or $1.24 per share from $1.21 billion or $1.94 per share last year. On average, 27 analysts estimated earnings of $1.14 per share for the quarter.

Nvidia's revenues for the quarter dropped 17 percent to $2.58 billion from $3.12 billion last year. Analysts had a consensus revenue estimate of $2.54 billion for the quarter.

"We achieved sequential growth across our platforms," said Jensen Huang, founder and CEO of NVIDIA. "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."

Revenue from gaming, Nvidia's largest business, declined 27% to $1.31 billion, while data-center revenue slipped 14% from a year ago to $655 million.

Nvidia's gross margin for the quarter dropped to 59.8 percent from 63.3 percent last year.

Looking forward to the third quarter, the company expects revenues of $2.90 billion, plus or minus two percent. Analysts currently estimate revenues of $2.97 billion for the quarter.

NVDA closed Thursday's trading at $148.77, down $1.30 or 0.87%, on the Nasdaq. The stock, however, gained $9.41 or 6.33% in the after-hours trade.