Nvidia Q3 Revenue Miss, Outlook Weak; Shares Down 16%

(RTTNews) - Shares of Nvidia Corp. (NVDA) plunged 16% in extended session on Thursday after chip designer's third-quarter revenues and fourth quarter outlook fell short of Wall Street estimates.

Santa Clara, California-based Nvidia's third-quarter profit surged to $1.23 billion or $1.97 per share from $838 million or $1.33 per share last year.

Adjusted earnings for the quarter increased to $1.15 billion or $1.84 per share from $833 million or $1.33 per share last year. On average, 20 analysts estimated earnings of $1.71 per share for the quarter.

Nvidia's revenues for the quarter jumped 21 percent to $3.18 billion from $2.64 billion last year. Analysts had a consensus revenue estimate of $3.24 billion for the quarter.

Nvidia's gross margin for the quarter improved to 60.4 percent from 59.5 percent last year.

Looking forward to the fourth quarter, the company expects revenues of $2.70 billion, plus or minus two percent. Analysts currently estimate revenues of $3.40 billion for the quarter.

NVDA closed Thursday's trading at $202.39, up $5.20 or 2.64%, on the Nasdaq. The stock, however, slipped $32.12 or 15.87% in the after-hours trade.