(By Balachander) NVIDIA Corp. (NASDAQ:NVDA) shares jumped 4.83 percent in extended trading on Thursday after the graphics and mobile chip maker guided third quarter revenue above market expectations following its second quarter results.
On a non-GAAP basis, earnings per share (EPS) declined 16 percent to 27 cents from 32 cents in the year-ago quarter, versus consensus estimate of 14 cents. GAAP EPS fell 24 percent to 19 cents.
Revenue rose about 3 percent to $1.04 billion, topping Wall Street projections of $1.01 billion.
Gross margin expanded to 52.0 percent from 51.9 percent on a non-GAAP basis.
Non-GAAP operating expenses jumped 12 percent to about $342.5 million for the second quarter ended July 29.
Looking ahead for the third quarter, the company forecasts revenue in the range of $1.15 billion to $1.25 billion, coming in above analysts' expectations of $1.09 billion. It expects gross margins to be flat relative to the previous quarter.
"Tegra has achieved record sales as tablets come into their own," said NVIDIA's chief executive Jen-Hsun Huang. "Our GPU business made strong gains in a weak market, boosted by our breakthrough Kepler architecture.
The stock, which has been trading in the 52-week range between $11.47 and $16.90, ended Thursday's regular trading at $14.71.