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Nvidia’s (NVDA+3.96%) shares made a slight recovery at the market open on Thursday, before reversing and continuing its fall during after-hours and pre-market trading.
The chipmaker’s shares were down by around 1.2% on Thursday morning but had climbed over 4% at the open. Nvidia’s stock was down by around 1% during pre-market trading on Thursday. Ahead of its earnings report on Wednesday, the chipmaker’s shares were down 0.75% at the market close. Its stock continued falling in after-hours trading — down 3.47% after releasing its fiscal third quarter results, and down 1.2% later in the evening.
The company set its fiscal fourth quarter revenue guidance at $37.5 billion, plus or minus 2%, but was expected to set guidance at $37.09 billion, according to FactSet (FDS-0.53%) estimates.
Nvidia would need fiscal fourth quarter guidance of at least $38 billion to maintain stock performance on earnings day, according to John Belton, portfolio manager at Gabelli Funds, in comments shared with Quartz ahead of earnings.
After it reported fiscal second quarter earnings in August, Nvidia’s shares fell 6.9% in after-hours trading due to a lower-than-expected guidance for the fiscal third quarter. The company had set fiscal fourth quarter revenue guidance at $32.5 billion, plus or minus 2% — slightly above the average analysts were expecting, but below top-end estimates.
Meanwhile, Nvidia’s fiscal third quarter revenues beat Wall Street’s expectations for another straight quarter at a record $35.1 billion — almost double its revenue from the same quarter last year. The chipmaker’s revenues for the quarter ended in October are up 17% from the previous quarter’s revenues of $30 billion. The company reported net income of $19.3 billion, and earnings per share, or EPS, of $0.78.