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Nvidia Beats but Lowers Guidance, Shares -5%

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One of the darlings of the computer graphics space, Nvidia (NVDA - Free Report) , has reported fiscal Q2 2019 (ended July) earnings after the closing bell today, with headlines beating on both top and bottom lines. Earnings of $1.94 per share beat the Zacks consensus by 11 cents, up 92% year over year. Revenues eked out a beat on the top line, as well: $3.12 billion outdid the $3.11 billion analysts were looking for and up 40% year over year, although down 3% sequentially.

Shares are selling off in late trading on the news, more than -5% at one stage following the Q2 release. Revenue guidance for Q3 came in light at $3.25 billion. And the stellar growth of the past several quarters will soon be running up against much tougher comps in a space already feeling pressure -- in Nvidia's case, partially due to a Chinese gaming ban.

The company has big plans for its latest Graphics Processing Unit (GPU), Turing, which the company considers a "giant leap forward." Nvidia also continues to buy back shares and increase dividend yields to investors. Shares of NVDA had climbed nearly 60% over the past year and more than 20% year to date, but the Zacks Rank #3 (Hold)-rated company look toward a lower open Friday morning.

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