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Andy Zaky
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Andy Zaky is a Hedge Fund Manager at Bullish Cross Asset Management, and editor of the Bullish Cross financial newsletter. His main area of knowledge is in global macro economics, fundamental analysis and technical analysis. Andy has about 14 years of investment experience, a strong background... More
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  • CBS, Nvidia higher in after hours on muted earnings 0 comments
    Feb 16, 2011 4:42 PM | about stocks: NVDA, CBS, INTC

    CBS (NYSE:CBS) is trading moderately higher in the after hours sessions on extraordinary earnings result. The company said net-income grew nearly 500% to $283 million ($0.41 a share or $0.46 non-GAAP) from a mere $58 million ($0.09 a share) in the same quarter last year.  Revenue was up a little over 10% to $3.9 billion on the quarter.  

    Analysts polled by Thomson Financial were expecting the company to post earnings of $0.44 a share on $3.84 billion in revenue.  The beat, though somewhat muted, was enough to keep the company trading higher in after hours.  CBS ended the regular session up $0.45 to $22.10 a share or 2.08% higher.  The stock traded as high as $23 in after hour before pulling back down to $22.30 or up $0.20 (1%).  

    Nvida (NASDAQ:NVDA) is also trading moderately higher in the after hours session despite missing on the top-line.  The company revealed that fourth-quarter revenue came in at $886 million versus consensus estimates which was looking for $894.5 million.  This probably has to do with the fact that the company significantly beat EPS expectations fueled largely by its settlement with Intel (NASDAQ:INTC).  Analysts were generally expecting the company to report $0.21 in EPS -- the company came in at $0.29.  

    Gross margins rose to 48.1% up nearly 160 basis points sequentially.  Nvidia also said that it expects revenue to come in at $939 to $957 million -- way ahead of the $888.5 million consensus -- for the upcoming quarter.  Nvidia is up over 50% over the past 6 weeks so its no surprise to see the stock trade  higher despite missing on the top-line.  In an environment of deep froth, stocks rarely trade lower even when companies miss expectations.  

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: NVDA, CBS, INTC
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