Nvidia (NVDA) Stock Up in After-Hours Trading on Q2 Beat, Higher Guidance

NEW YORK (TheStreet) -- Shares of Nvidia  (NVDA)  were advancing in after-hours trading on Thursday as the Santa Clara, CA-based technology company posted better-than-expected fiscal 2017 second quarter results and lifted its third quarter guidance.

After today's closing bell, Nvidia reported revenue of $1.43 billion, surpassing Wall Street's expectations of $1.35 billion. Earnings came in at 53 cents per share, beating analysts' projected 37 cents per share.

For the fiscal 2016 second quarter, Nvidia reported earnings of 5 cents per share and $1.15 billion in revenue. 

The company projects third quarter revenue to be $1.68 billion, plus or minus 2%. Wall Street is looking for $1.45 billion in revenue. 

Nvidia's GPU business increased 25% year-over-year to $1.20 billion, while its gaming divison rose 18% year-over-year to $781 million. Tegra Processor revenue grew 30% year-over-year to $166 million.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate NVIDIA CORP as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

You can view the full analysis from the report here: NVDA

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