Nvidia's Stock Slumps After Downbeat Sales Outlook

Nvidia Corp.'s stock slumped 3.1% in after-hours trade Thursday, after the graphics chip company beat fiscal first-quarter profit expectations, but provided a downbeat sales outlook. The company said net earnings for the quarter ended April 26 were $134 million, or 24 cents a share, compared with $137 million, or 24 cents a share, in the year-earlier period. Excluding non-recurring items, adjusted earnings per share came in at 33 cents, beating the FactSet consensus of 25 cents. Revenue rose 4% to $1.15 billion, just shy of the FactSet consensus of $1.16 billion. For the second quarter, the company expects revenue of $1.01 billion, plus or minus 2%, compared with the FactSet consensus of $1.18 billion. Adjusted gross margin is expected to be 56.0%, plus or minus 0.5 percentage points, compared with first-quarter adjusted gross margin of 56.9%. The stock has run up 12% year to date through Thursday's close, compared with a 1.4% rise in the S&P 500.