Nvidia's Earnings Drop, But Still Beat Estimates

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Semiconductor maker Nvidia (NASDAQ:NVDA) reported a profit of $119 million in the second quarter, which was a 21% drop from last year’s profit of $151.6 million.

Adjusted EPS still managed to blow away estimates, though, coming it at 27 cents per share as Wall Street only expected 14 cents per share.

Revenue also grew, gaining 3% to come in at $1.04 billion.

Earnings fells despite such sales growth since operating costs, including higher research and development expenses and overhead costs, grew 14% for the quarter.

The company was also hit by other obstacles, including manufacturing problems,.Nvidia relies on contract manufacturers like Taiwan Semiconductor (NYSE:TSM), for example, which has struggled lately with the production of one particular chip.

Shares were up more than 5% in after-hours trading on the news and jumped around 2% right after the bell this morning.

The company has climbed around 23% in the last year, including nearly double-digit gains since January.