Earnings Preview: Nvidia Corp.

| About: NVIDIA Corporation (NVDA)

Nvidia Corp. (NASDAQ:NVDA) is expected to report Q1 earnings after the market close on Monday, May 3 with a conference call scheduled for 5 pm ET.


The consensus estimate is 21c for EPS and $985.39M for revenue, according to First Call. Management provided conservative guidance on their last earnings call for Q1 revenue of flat with Q4's reported $982.5M.

Analyst Views

Goldman's estimates for Nvidia are unchanged after the beginning of April market share data from Mercury Research was released. The firm believes the slightly lower GPU market growth in Q1 is likely to be offset by Nvidia’s market share gains. Goldman notes that the strength of business in April is likely to be incremental to results when Nvidia actually reports. In addition, Goldman says the easing of 40nm supply constraints at Taiwan Semiconductor (NYSE:TSM) could be a slight tailwind to the quarter. Goldman's Q1 sales estimate of $1.033B, or up 5% quarter-over-quarter, is above consensus and guidance of flat qoq. The firm thinks the stock could trade up on a moderate beat for the quarter given its recent underperformance, and despite high expectations set by semi peers with PC exposure, such as Intel (NASDAQ:INTC). However, Goldman remains cautious on the stock as they think operating expenses remain too high relative to Nvidia’s revenue run rate. Goldman's FY11, FY12, and FY13 estimates are unchanged at $0.95, $1.05, and $1.15, respectively.