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Nvidia beats quarterly profit, revenue estimates; shares rise

FILE PHOTO: The logo of Nvidia Corporation, it is to be seen at this year’s annual Computex computer show in Taipei, Taiwan, May 30, 2017. REUTERS/Tyrone Siu/File Photo

(Reuters) – Nvidia Corp’s quarterly revenue and profit beat Wall Street estimates on Thursday, which will benefit from a better-than-expected performance in the gaming and automotive chips business, sending shares up 6 percent in extended trading.

While Nvidia has been introduced into growth areas such as artificial intelligence, as well as self-driving cars, the bread-and-butter business of selling potato chips in the improvement of video game graphics continues to be the largest contributor to sales.

The sales of the online business were down 27% to $1.31 billion, but beat analysts ‘ estimate of $1.28 billion, according to five analysts surveyed by IBES Refinitiv.

The company said it expects third-quarter revenue of $2.9 billion, plus or minus 2 per cent. Analysts on average were expecting revenue of $2.97 billion, according to IBES data, Refinitiv.

It is reported quarterly adjusted gross margin of 60.1%, above expectations of 59.5%, according to FactSet data.

Nvidia’s net income declined to $552 million, or 90 cents per diluted share, for the second quarter ended July 28 of $1.1 billion, or $1.76 per diluted share, a year earlier. With the exception of the 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 Munsif Vengattil in Bengaluru; Editing by Arun Koyyur

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