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Shares of Nvidia Corp. lost earnings after earnings in the expanded session on Thursday after the chip maker did not provide a year-ahead outlook and said data center sales may remain weak.
Nvidia
NVDA, + 0.38%
Shares, which rose 7% after the results report was released Thursday afternoon, began to lose the gains after Colette Kress, chief financial officer, said sales of data centers would remain unchanged. weak in the second quarter and dispense with forecasting for the year.
In February, Nvidia had forecast an annual turnover "in sharp decline" from the 11.72 billion USD reported for fiscal 2019. The shares recorded a final increase of 0.7% after the hours.
"The data center spending spree all over the world will probably persist in the second quarter and visibility remains low," Kress said during a conference call with analysts. "And in games, the shortage of processors, while improving, will affect the initial ramp of our notebook business."
"For now, we do not plan to give a full year of general guidance," Kress said, although she said that drivers who benefited from the previous year "were still online."
Nvidia provided a forecast for the current quarter, anticipating a turnover of 2.5 to 2.6 billion dollars, while analysts expected a turnover of 2.54 billion dollars.
Data center sales – Nvidia's second business sector – fell 10 percent to $ 634 million from the first quarter of last year, as analysts surveyed by FactSet expected a decline in data center sales of approximately 5% to $ 663.7 million.
For more: The promise of a magic rebound for technology comes with little evidence to back it up
In total, the company reported first-quarter net income of $ 394 million, or 64 cents per share, compared to $ 1.24 billion, or $ 1.98 per share, over the same period of the year. 39, previous year. Analysts surveyed by FactSet were counting on earnings per share of 58 cents.
Revenues dropped to $ 2.22 billion from $ 3.21 billion in the same quarter of the previous year. Analysts had forecast revenues of $ 2.2 billion.
"Nvidia is back on an upward trajectory," said Jensen Huang, founder and CEO of Nvidia, in a statement. "Despite the short-term pause in demand from very large-scale customers, the AI application continues to accelerate."
The gaming sector, the largest segment of Nvidia, saw its turnover decline 39% to $ 1.06 billion, but better than the $ 933.5 million expected by Wall Street. During the call, Huang said that China's game sales were "dynamic".
See also: Here are the shares to buy if a total trade war between the United States and China breaks out, says Goldman
Sales of professional visualization rose 6% to $ 266 million, while Street forecast $ 289.9 million. Auto sales rose 14% to $ 166 million, while analysts forecast $ 163.8 million and original equipment manufacturers and intellectual property registered a 74% decline $ 99 million, down from $ 121.4 million expected by Street.
Nvidia shares closed up 0.4% to $ 160.19 in Thursday's regular session, but fell 34.9% over the past year. The stock options before the profits had involved a more perverse reaction than usual.
The PHLX Semiconductor Index
SOX, -1.68%
Thursday down 1.7% in the face of concerns over a US ban on Huawei equipment, while the Dow Jones Industrial Average
DJIA, + 0.84%
rose 0.8%, the S & P 500 index
SPX, + 0.89%
gained 0.9% and the Nasdaq Composite, a high-tech index
COMP + 0.97%
advanced by 1%.
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