(Adds shares, background, analyst comments)
By Lehar Maan and Abhirup Roy
May 6 Nvidia Corp reported quarterly
results well above analysts' expectations as it sold more
graphic cards for use in high-performance computers and gaming
But the company's shares fell more than 2 percent, which
analysts said was due to the lack of a forecast for the current
quarter. Nvidia usually provides forecasts when it reports
"On the company's specifics there is no doubt the quarter
was better ... but the absence of an outlook leaves the stock
vulnerable to trading with the market today," B. Railey & Co
analyst Craig Ellis told Reuters.
Nividia, which is scheduled to report its results on May 8,
released some key numbers on Tuesday after a preliminary draft
was accidentally emailed to an internal distribution list of
about 100 individuals.
The Santa Clara, California-based company said it expected
net income to double to $136.5 million, or 24 cents per share,
for the first quarter ended April 27.
Excluding items, it expected to earn 29 cents per
It expects revenue to rise 16 percent to $1.10 billion.
Analysts on average were expecting earnings of 17 cents per
share on revenue of $1.06 billion, according to Thomson Reuters
A modest recovery in PC trends, overall strength in its
graphic cards business and a foray into the automobile markets
are some of the factors that helped Nvidia, JMP Securities
analyst Alex Gauna said.
The company is heavily promoting its graphics technology for
a wider range of applications, including cars and data centers,
as the personal computer industry loses steam and competition in
the mobile chips market intensifies.
"Nvidia has had product refresh and has clear performance
dominance over key rival Advanced Micro Devices," Gauna said.
Nvidia's shares, which have gained 18 percent in the last
three months, were down 1.5 percent at $18.34 in early afternoon
trading on the Nasdaq. AMD shares were down about a
percent at $4.05.
(Reporting by Lehar Maan and Soham Chatterjee in Bangalore;
Editing by Kirti Pandey and Saumyadeb Chakrabarty)