Nvidia Q4 Profit Beats Wall Street, Shares Up 8%

(RTTNews) - Shares of Nvidia Corp. (NVDA) gained over 8% in extended session on Thursday after chip designer's fourth-quarter earnings beat Wall Street estimates, but revenues and outlook fell short of expectations.

Santa Clara, California-based Nvidia's fourth-quarter profit dropped to $567 million or $0.92 per share from $1.12 billion or $1.78 per share last year. On average, 24 analysts estimated earnings of $0.91 per share for the quarter.

Adjusted earnings for the quarter dropped to $496 million or $0.80 per share from $1.08 billion or $1.72 per share last year.

Nvidia's revenues for the quarter dropped 24 percent to $2.21 billion from $2.91 billion last year. Analysts had a consensus revenue estimate of $2.32 billion for the quarter.

Nvidia's gross margin for the quarter dropped to 54.7 percent from 61.9 percent last year.

Looking forward to the first quarter, the company expects revenues of $2.20 billion, plus or minus two percent. Analysts currently estimate revenues of $2.41 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.