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Nvidia Beats but Lowers Guidance, Shares -5%

One of the darlings of the computer graphics space, Nvidia NVDA, 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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