Graphics-chip maker Nvidia late Wednesday matched reduced targets for its fiscal second quarter but guided much lower than views for the current period. Nvidia stock fell in extended trades.
The Santa Clara, Calif.-based company earned an adjusted 51 cents a share on sales of $6.7 billion in the quarter ended July 31. Analysts polled by FactSet had expected Nvidia earnings of 50 cents a share on sales of $6.7 billion. On a year-over-year basis, Nvidia earnings plummeted 51% while sales rose 3%.
On Aug. 8, Nvidia slashed its targets for the fiscal second quarter, citing weak gaming-chip sales. It announced preliminary sales of $6.7 billion vs. its prior forecast of $8.1 billion for the period.
For the current quarter, Nvidia predicted revenue of $5.9 billion, down 17% from the year-earlier quarter. Analysts had predicted $6.91 billion in revenue for the fiscal third quarter.
Nvidia Stock Sinks Late
In after-hours trading on the stock market today, Nvidia stock dropped 3.2% to 166.68. During the regular session Wednesday, NVDA stock inched 0.2% higher to close at 172.22.
"We are navigating our supply chain transitions in a challenging macro environment and we will get through this," Chief Executive Jensen Huang said in a news release.
Nvidia sees continued weakness in its video game chip business in the current quarter. Sales channel partners are reducing inventory to align with lower demand, the company said.
Nvidia's data center chip business remains a bright spot for the company. Sales in the segment rose 61% year over year to $3.81 billion in the second quarter.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
