NVIDIA Corporation (NVDA) is scheduled to report its Q2 2013 results on August 9, 2012, after the bell. The street expects EPS and revenue of $0.14 and $1.01B, respectively.
In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from NVDA and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.10 EPS, in-line with analyst estimates.
The consensus EPS estimate is $0.14 based on 31 analysts' estimates, down from $0.25 a year ago. Revenue estimates are $1.01B, just below $1.02B from a year ago. The median target price by analysts for the stock is $16.00.
Average recommendation: Overweight
Source: Marketwatch
Analyst Upgrades and Downgrades
- On June 26, 2012, Northland Securities initiated Outperform rating for the company.
- On June 24, 2012, Canaccord Adams upgraded the company from Hold to Strong Buy.
- On June 10, 2012, UBS upgraded the company from Neutral to Buy.
- On June 7, 2012, FBR Capital reiterated Outperform rating for the company.
- On April 4, 2012, Cantor Fitzgerald initiated Buy rating for the company.
- On March 27, 2012, JMP Securities upgraded the company from Mkt Underperform to Mkt Perform.
- On March 11, 2012, Avian initiated Positive rating for the company.
- On February 13, 2012, FBR Capital upgraded the company from Mkt Perform to Outperform.
Latest News
- On June 27, 2012, NVIDIA announced that Nexus 7 from Google, the first $199 quad-core 7-inch tablet running on the newest version of Android 4.1 (Jelly Bean), features the NVIDIA Tegra 3 mobile processor.
- On June 21, 2012, NVIDIA announced that based on the same powerful Tegra processor used in smartphones and tablets, the Tegra VCM will power the vehicle's 17-inch touchscreen infotainment and navigation system -- the largest ever in a passenger car -- as well as its all-digital instrument cluster.
- On June 19, 2012, NVIDIA announced that its GPUs will be used by scientists at Germany's Forschungszentrum Juelich, which hosts the Juelich Supercomputing Centre, one of Europe's largest and most powerful supercomputing resources, to accelerate advanced neurological research targeted at unlocking secrets of the human brain.
- On June 18, 2012, Eurotech SpA announced that it has signed an agreement with NVIDIA to expand the Eurotech Aurora supercomputer product line with new energy-efficient, high-performance GPU-accelerated systems.
- On June 13, 2012, NVIDIA announced that NVIDIA Tesla GPUs are now available in Fujitsu's PRIMERGY CX400 S1 servers, offering high-performance GPU-accelerated computing to Fujitsu's large installed base of customers in Japan and Europe.
- On May 25, 2012, Funcom N.V. (Funcom) announced that it is working closely with NVIDIA for Funcom's upcoming multiplayer online game, The Secret World. Funcom and NVIDIA's engineering teams have been working together to make The Secret World graphically advanced.
- On May 14, 2012, NVIDIA Corp. and Intellectual Ventures announced that they have jointly acquired a set of patents developed and owned by IPWireless. The portfolio comprises approximately 500 patents granted and pending in the wireless communications area, including essential concepts in LTE, LTE-Advanced and 3G/4G technologies.
- On May 11, 2012, NVIDIA Corp. announced that for second quarter of 2013, it expects revenue to be between $990 million and $1.05 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $978 million for second quarter of 2013.
- On February 24, 2012, Cypress Semiconductor Corp. announced that NVIDIA Corp. and Cypress are collaborating on touchscreen solutions for Android based mobile devices based on Cypress's Gen 4 True Touch Solution and NVIDIA's DirectTouch architecture.
- On February 15, 2012, NVIDIA Corp. announced that for the first quarter of 2013, it expects revenue to be between $900 million and $930 million. According to I/B/E/S Estimates, analysts were expecting the Company to report revenues of $944 million for the first quarter of 2013.
- On February 8, 2012, Rambus Inc. announced that it has signed a patent license agreement with NVIDIA Corp.. The agreement covers the use of Rambus patented innovations in a broad range of integrated circuit (IC) products offered by NVIDIA.
Competitors
Advanced Micro Devices (AMD), Intel (INTC), QUALCOMM (QCOM), and Texas Instruments (TXN) are competitors for NVIDIA and the table below provides the key metrics for these companies and the industry.
The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.
Competitors' Latest Development
- On July 30, 2012, Texas Instruments Incorporated announced that it proposes to offer, subject to market and other considerations, approximately $1.0 billion of senior unsecured notes.
- On July 30, 2012, Texas Instruments Incorporated announced the pricing of two series of senior unsecured notes for an aggregate principal amount of $1.5 billion. The notes consist of the following: $750 million of 0.45% notes due August 3, 2015 $750 million of 1.65% notes due August 3, 2019 TI intends to use the net proceeds of this offering for general corporate purposes which, among other things, could include repurchases of common stock.
- On July 24, 2012, QUALCOMM Inc. announced that Delta has agreed to integrate the Qualcomm Halo Wireless Electric Vehicle Charging (WEVC) system into its Delta E-4 Coupe electric vehicles, which are intended for deployment in Qualcomm's London WEVC trial.
- On July 23, 2012, Texas Instruments Incorporated announced that for the third quarter of 2012, it expects revenue to be in the range of $3.21-$3.47 billion and Earnings per share (EPS) to be in the range of $0.34-$0.42. According to I/B/E/S Estimates, analysts are expecting the Company to report revenues of $3.54 billion and EPS of $0.50 for the third quarter of 2012.
- On July 19, 2012, Advanced Micro Devices, Inc. announced that for third quarter of 2012, it expects revenue to decrease 1%, plus or minus 3%, sequentially. The Company reported revenue of $1.41 billion for second quarter of 2012.
- On July 18, 2012, QUALCOMM Inc. announced that for fiscal 2012, it expects revenues to be in the range of $18.7 billion - $19.1 billion compared to the prior range of $18.7 billion - $19.7 billion.
- On July 17, 2012, Intel Corporation announced that for the third quarter of 2012, it expects GAAP revenue of $14.3 billion, plus or minus $500 million. For fiscal 2012, it expects GAAP revenue up between 3% and 5% year over year, down from the prior expectation for high single-digit growth.
- On July 11, 2012, Advanced Micro Devices, Inc announced that it was selected for an award of $12.6 million for two research projects associated with the U.S. Department of Energy's (DONE) Extreme-Scale Computing Research and Development Program, known as 'FastForward.' The DOE award provides up to $9.6 million to AMD for processor-related research and up to $3 million for memory-related research.
- On July 10, 2012, Reuters reported that Intel Corporation will spend more than $4 billion to buy up to 15% of ASML Holding NV. Intel hopes to speed the adoption of the next generation of chip manufacturing processes from ASML by as much as two years.
- On July 9, 2012, Advanced Micro Devices, Inc. announced that for the second quarter of 2012, it expects revenue to decrease approximately 11% sequentially. The Company previously forecasted second quarter 2012 revenue to increase 3% , plus or minus 3% sequentially.
- On June 29, 2012, Advanced Micro Devices, Inc. announced that for first quarter of 2010 it expects revenue to be down seasonally.
- On June 27, 2012, QUALCOMM Inc. and Akamai Technologies, Inc. announced that the two companies are collaborating on the implementation of new protocol enhancements for mobile devices.
- On June 26, 2012, Advanced Micro Devices, Inc announced that League Baseball's (MLB) San Francisco Giants selected AMD as a technology partner. The Giants have recently installed 66 new AMD A-Series Accelerated Processing Unit (APU)-based HP TouchSmart 320m All-In-One (AIO) touchscreen systems at AT&T Park, which will be followed by deployments of other AMD-powered systems throughout the organization.
- On June 18, 2012, InterDigital Inc and Intel Corporation announced that certain of InterDigital`s subsidiaries have signed a definitive agreement to sell to Intel roughly 1,700 patents and patent applications for $375 million in cash.
- On June 18, 2012, QUALCOMM Inc. announced that it has acquired Summit Microelectronics (Summit), a developer and provider of programmable power integrated circuits based in Sunnyvale, CA. All employees of Summit Microelectronics have joined Qualcomm's CDMA Technologies division.
- On June 11, 2012, Texas Instruments Incorporated announced that for the second quarter of 2012, it currently expects revenue to be in the range of $3.28-3.42 billion compared with the prior range of $3.22-3.48 billion and EPS to be in the range of $0.32-0.36 compared with the prior range of $0.30-0.38.
- On June 7, 2012, Phoenix Technologies Ltd., a company in UEFI firmware technology, products and tools, announced it has signed an agreement with Intel Corporation to be its collaborative partner for BIOS.
- On June 4, 2012, Avanquest Software SA has announced having signed a collaboration agreement with Intel Corporation for the marketing of Avanquest Software's flagship titles on the Intel AppUpSM center in France.
- On May 24, 2012, Reuters reported that Bharti Airtel Limited agreed to buy a 49% stake in Qualcomm Inc's (QCOM.O) fourth-generation (4G) broadband venture in the country for $165 million.
- On May 16, 2012, Reuters reported that Bharti Airtel Limited is in advanced talks to buyout the Indian partners of QUALCOMM Inc. in a fourth-generation (4G) broadband venture in the country.
- On May 7, 2012, Intel Corporation announced that its board of directors has approved a 7% increase in the quarterly cash dividend to $0.225 per share ($0.90 per share on an annual basis), beginning with the dividend that will be declared in the third quarter of 2012.
Technical Overview
The stock has a market capitalization of $8.49B and is currently trading at $13.72 with a 52 week range of $11.47 - $16.90. The stock's year-to-date performance has been -1.01%. It is currently trading above 20 and 50 SMA, but below 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I am long NVDA.
