These two large tech caps announced earnings on Thursday.
Shares of NVIDIA Corp. NVIDIA soared 5.59% to $157.09 in after-hours trading Thursday after topping consensus estimates on earnings for the second quarter of fiscal 2020 by 7 cents. NVIDIA posted 90 cents per share, which was 49% lower year-over-year.
Revenue was $2.58 billion, down 17.3% from the prior-year quarter, exceeding expectations by $30 million.
The California-based global visual computing company also noted a 350 basis point drop in gross margin to 59.8% and a 19% jump in operating expenses to $970 million. It also reported a 51% decline in both operating income to $571 million and net income to $552 million.
Looking ahead to the third quarter of fiscal 2020, NVIDIA anticipates revenue of $2.84 billion to $2.96 billion compared to projections of $2.97 billion. The company also estimates that the gross margin will be around 62% with a variation of 50 basis points upper or lower.
The stock traded at $148.8 per share at close Thursday for a market capitalization of $90.6 billion. NVIDIA has gained 11% so far this year, but is underperforming the Nasdaq by 5.6%. The 52-week range is $124.46 to $292.76.
Applied Materials Inc. AMAT was 0.34% lower at $47 per share in after-hours trading Thursday after missing consensus estimates on earnings for the third quarter of fiscal 2019 by 9 cents. The company posted 61 cents per share, 40% lower year-over-year.
Revenue totaled $3.56 billion, down 14.4% from the prior-year quarter and beating expectations by $30 million.
By segment, Semiconductor Systems had $2.27 billion in revenue, Applied Global Services recorded $931, and Display and Adjacent Markets noted $339 million.
The California-based provider of equipment, services and software also posted a 110 basis point decrease in gross margin to 43.5% and a 380 basis point decrease in operating margin to 22.5%.
For the fourth quarter of fiscal 2019, Applied Materials expects revenue of $3.535 billion to $3.835 billion versus projections of $3.65 billion.
Applied Materials closed at $47.2 per share Thursday for a market capitalization of $44.15 billion. Year to date, the stock has climbed 44%, outperforming the Nasdaq by 27%. The 52-week range is $28.79 to $52.42.
Disclosure: I have no positions in any security mentioned.
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