Shares of (NVIDIA Corporation NASDAQ: NVDA) spiked in aftermarket trading after reporting quarterly results that topped analysts’ expectations. The company reported revenues were $2.22 billion for the first quarter of fiscal 2019, down when compared with $3.21 billion a year ago, but above analysts’ expectations of $2.20 billion, according to Refinitiv. Earnings, excluding certain items, were $0.88 per share for the first quarter of fiscal of 2019, which also topped analysts’ expectations of $0.81 per share, according Refinitiv.
A strong performance by the company’s gaming segment helped lift its quarterly results. The gaming segment reported revenues of $1.06 billion for the fiscal first quarter, down 39 percent when compared to a year ago, but above consensus estimates of $933.5 million, according to analysts polled by FactSet.
“NVIDIA is back on an upward trajectory,” said Jensen Huang, founder and CEO of NVIDIA. “We’ve returned to growth in gaming, with nearly 100 new GeForce Max-Q laptops shipping. And NVIDIA RTX has gained broad industry support, making ray tracing the standard for next-generation gaming. “Despite the near-term pause in demand from hyperscale customers, the application of AI continues to accelerate. AI adoption is accelerating in the world’s largest industries, moving beyond the cloud to the edge where AI processing has to be instantaneous. We’re excited about our pending acquisition of Mellanox, which will help us drive data center architecture for high performance computing and AI from the cloud to the edge,” he said.