Nvidia's Troubles Continue

Nvidia's Troubles Continue Shares of graphics card titan Nvidia were falling in extended trading Wednesday after the company provided an October quarter forecast that clocked in below expectations.  Expectations for the firm's July quarter results were already tempered after the company shared preliminary results earlier this month. Barron's Tae Kim has the full story: The semiconductor company reported adjusted earnings per share of 51 cents for the July quarter, compared with the consensus estimate of 50 cents among analysts tracked by FactSet . Revenue came in at $6.7 billion, which was in line with both a negative preannouncement Nvidia (ticker: NVDA) had issued earlier and analysts’ recently reduced expectations. The big news was the outlook. For the current quarter, Nvidia said revenue will be in a range with a midpoint of $5.9 billion, which was way below the consensus call of $6.9 billion. “We are navigating our supply chain transitions in a challenging macro environment and we will get through this,” said Jensen Huang, founder and CEO of Nvidia, in the release. Nvidia shares fell 2.3% following the report. Earlier this month, Nvidia preannounced disappointing results for its fiscal second quarter. At the time it blamed weaker-than-expected gaming segment sales. Nvidia’s stock has declined by 41% this year as of Wednesday’s close, versus the 27% drop in the iShares Semiconductor ETF (SOXX), which tracks the performance of the ICE Semiconductor Index. Read more of Tae's Nvidia coverage here.