Needham & Company Lowers Estimates on NVIDIA (NVDA); Negatively Preannounced F4Q12 Results – Not a Huge Surprise
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Price: $225.16 -0.06%
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
58 Buy, 10 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on NVIDIA (NASDAQ: NVDA) price target of $17.00.
Needham analyst says, "After the close yesterday, NVDA preannounced F4Q12 (Jan) results expecting revenues to be down 10-11% sequentially to $950MM (+/- 1%), compared to previous expectations of $1.066BN (+/- 2%). Given Intel’s (Nasdaq: INTC) preannouncement on 12/12 and AMD’s (NYSE: AMD) lower C1Q guidance yesterday, NVDA’s preannouncement was not a huge surprise. NVDA experienced lower demand from its mainstream GPU segment due to global disk-drive shortage caused by the Thailand flooding. Higher prices of disk-drives hampered PC OEMs ability to include discrete GPUs. Also, Tegra 2 revenues declined more than expected as NVDA is transitioning to Tegra 3 production in F1Q13 (Apr). Now that a bottom has been set in the earnings level (we think F1Q), we would be aggressive buyers on any pull-back in the shares. We remain bullish for the following reasons: 1) broader traction of Tegra 3 in the smartphone market, specifically LTE quad-core smartphones, 2) strong market position on Windows-ARM (Nasdaq: MSFT) based notebook platforms; 3) second-half ramp on Intel’s Ivy-bridge processors; and 4) compelling valuation (trading at 8.9x FY13 Non-GAAP EPS)."
Needham lowers FY12 EPS estimate from $1.26 to $1.18 and FY13 from $1.30 to $1.10.
For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.
Shares of NVIDIA closed at $14.94 yesterday.
Needham analyst says, "After the close yesterday, NVDA preannounced F4Q12 (Jan) results expecting revenues to be down 10-11% sequentially to $950MM (+/- 1%), compared to previous expectations of $1.066BN (+/- 2%). Given Intel’s (Nasdaq: INTC) preannouncement on 12/12 and AMD’s (NYSE: AMD) lower C1Q guidance yesterday, NVDA’s preannouncement was not a huge surprise. NVDA experienced lower demand from its mainstream GPU segment due to global disk-drive shortage caused by the Thailand flooding. Higher prices of disk-drives hampered PC OEMs ability to include discrete GPUs. Also, Tegra 2 revenues declined more than expected as NVDA is transitioning to Tegra 3 production in F1Q13 (Apr). Now that a bottom has been set in the earnings level (we think F1Q), we would be aggressive buyers on any pull-back in the shares. We remain bullish for the following reasons: 1) broader traction of Tegra 3 in the smartphone market, specifically LTE quad-core smartphones, 2) strong market position on Windows-ARM (Nasdaq: MSFT) based notebook platforms; 3) second-half ramp on Intel’s Ivy-bridge processors; and 4) compelling valuation (trading at 8.9x FY13 Non-GAAP EPS)."
Needham lowers FY12 EPS estimate from $1.26 to $1.18 and FY13 from $1.30 to $1.10.
For an analyst ratings summary and ratings history on NVIDIA click here. For more ratings news on NVIDIA click here.
Shares of NVIDIA closed at $14.94 yesterday.
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