Q2 Preview: Despite Tough Macro Environment NVIDIA (NVDA) Expected to Grow EPS Q/Q on Better Margins

Article Stock Quotes (1) Comments (0)

NVIDIA (Nasdaq: NVDA) shares are trading higher Thursday afternoon heading into the second-quarter 2013 earnings report, expected out after the market closes.

Currently, the Street is looking for NVIDIA to report a 56 percent drop in earnings per share to $0.14 per share on revenue of $1.01 billion, or down 1 percent.

Data from StreetInsider.com's Ratings Insider has 15 analysts with a Buy, 14 at Neutral, and zero with a Sell rating on NVIDIA.

Analyst Comments:

• Deutsche Bank is looking for revenue of $1,022m, up+10.5% q/q and +0.6% y/y which is in-line with mid-point of guidance ($990-1050m) and slightly above Street at $1,014m. Growth in solid product momentum in Mobile (Tegra) and PC (Kepler GPU) should offset a slowing demand environment in GPUs and Mobile, according to the firm. They model F2Q13 EPS of $0.17, above the Street estimates of $0.14, due to better margins. Still DB is maintaining a Hold on NVDA. "While an HDD-related snapback is likely to benefit the GPU segment as 2012 progresses, we expect seasonal and structural challenges to persist (MPU integration etc.)."
  
  
• Wedbush said despite the tough macro backdrop, they expect results to meet expectations. "We think despite the weakening demand trends in PCs in the months of June and July that NVDA's FQ2 print will likely meet expectations primarily driven by Kepler, Tegra, and GPU market share gains," the analyst said. The firm is modeling revenue of $1,007.6MM, up 9% sequentially, and EPS of $0.14, in-line with the Street. Wedbush rates shares at Outperform, with an $18 price target.

Find out earnings from NVIDIA and other stocks immediately following their release at EPS Insider.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• UPDATE: UBS Downgrades Carnival (CCL) to Neutral; Worst May Not Be Behind
• Urban Outfitters (URBN) Added to Best Ideas List at Janney Capital on Solid Q1 Results
• UPDATE: Wedbush Downgrades XenoPort (XNPT) to Neutral

Create E-mail Alert Related Categories

Analyst Comments, Analyst EPS View

Related Entities

Deutsche Bank, Earnings

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?