On Second Review, Nvidia sells off - Concerns Regarding Competition Weigh on the Stock
Bottom-line: EPS was $0.32 vs analysts expectations of $0.25.
Top-line: Revenue rose to $1.01 billion from $817 million a year ago.
After-market price change on 8/11: After the company's second-quarter results were announced, Nvidia's shares rose more than a dollar and a half (an increase of 12%) to $15, primarily due to a strong second-quarter revenue result. The stock had already been up one dollar (a rise of 9%) in the regular trading session before the firm's results were disclosed.
Day after trading on 8/12: However after additional analysis, the street was not quite as sanguine and focused on the firm's third-quarter revenue guidance (growth of 4% to 6%, which translates to a range of $1.06 billion to $1.08 billion). Analysts are primariliy concerned about competition as well as the macro-environment. As a result, the stock traded under $13 once investment professionals digested the second quarter result as well as third-period guidance and management's commentary.