Jul. 18, 2014, 12:31 PM
- In addition to offering soft Q3 guidance, AMD (AMD -17.5%) stated on its CC (transcript) its expects Q3 to be this year's "peak quarter" for console APU shipments.
- FBR, which has cut shares to Market Perform, calls this "most surprising," given console APU shipments rose sharply in Q4 last year (as the Xbox One/PS4 launched).
- It thinks AMD might benefit down the line from a design win for Nintendo's next-gen 3DS, but only sees this boosting EPS by $0.04. The firm is also concerned inventory rose 10% Q/Q to a new all-time high.
- When pressed in the Q&A about what his console remarks imply for Q4 sales, CEO Rory Read declined to offer a forecast. He did, however, state PC-related sales are expected to rise in Q4 (in-line with normal seasonality).
- BofA/Merrill, which has cut shares to Underperform, argues AMD's PC CPU/GPU ops (have seen share losses to Intel/Nvidia) remain "a material headwind." The firms adds light exposure to enterprise PCs (outperforming in 2014) and certain low-end PC segments seeing strong growth (such as Chromebooks) are also issues.
- Raymond James is still bullish: Though thinking management should've communicated console trends better, it believes AMD continues to execute well, and suspects there's an "element of prudence" to Microsoft/Sony's build activity.
- Nvidia (NVDA -3.9%) is off in sympathy. Read stated on the CC AMD saw a decline in high-end GPU shipments to graphics card channels - Digitimes previously reported something similar - as demand from cryptocurrency miners abated." Shipments are expected to rise in Q3.
Jun. 12, 2014, 4:26 PM
- Citing stronger-than-expected business PC demand, Intel (INTC) now expects Q2 revenue of $13.4B-$14B, better than prior guidance of $12.5B-$13.5B and a $13B consensus.
- Moreover, the chip giant now expects "some revenue growth" for the whole of 2014, after previously guiding for flat sales; the consensus is for 0.7% growth.
- Full-year R&D/MG&A spending guidance has been upped by $300M to $19B-$19.4B.
- The guidance hike follows several quarters of narrowing PC shipment declines, thanks in large part to healthy corporate demand. Windows 7 system purchases tied to Microsoft's decision to end Windows XP support have played a key role.
- Other PC industry names are up in sympathy: MSFT +1% AH. AMD +1.4%. HPQ +0.8%. NVDA +0.7%.
May 8, 2014, 5:21 PM
- Nvidia (NVDA) expects FQ2 revenue of $1.1B (+/- 2%), favorable to a $1.08B consensus. But gross margin is expected to slip to 54% from FQ1's 55.1%.
- In its CFO commentary (.pdf), Nvidia states GPU sales (81% of revenue) rose 14% Y/Y, even with FQ4's growth rate. Strong high-end PC GPU (GeForce GTX) and GRID (server GPU) sales provided a boost, as did continued Tesla (HPC CPU) growth.
- Tegra sales, which plunged 37% Y/Y in FQ4 thanks to share loss to Qualcomm and others, rose 6% Q/Q and 35% Y/Y to $139M on the back of higher smartphone and automotive volumes.
- Opex only rose 4% Y/Y, a marked slowdown from FQ4's 13% clip and giving a boost to EPS. A $500M share repurchase agreement was struck during the quarter; Nvidia added $1B to its buyback program last November.
- Nvidia released its core FQ1 numbers on Tuesday after accidentally e-mailing a draft.
- Nvidia's full earnings release
May 6, 2014, 9:28 AM
- Though Nvidia (NVDA) originally planned to release its FQ1 results on Wednesday, the company was forced to release its core numbers early after a preliminary draft was accidentally e-mailed to ~100 people.
- FQ1 gross margin was 55.1%, +130 bps Q/Q and +50 bps Y/Y, and above guidance of 54.5%. That provided a boost to EPS, as did the fact opex only rose 4% Y/Y, less than FQ4's 13% and below revenue growth of 16% (up soundly from FQ4's 3% growth).
- Nvidia's guidance and full FQ1 results will be delivered on Wednesday, as originally planned.
- FQ1 results, PR
May 6, 2014, 9:08 AM
Feb. 12, 2014, 5:12 PM
- Nvidia (NVDA) expects FQ1 revenue of $1.05B (+/- 2%), above a $1B consensus.
- The chipmaker soundly beat FQ4 estimates thanks to a 14% Y/Y increase in GPU sales to $947M. That growth rate represents a reversal from FQ3's 2% drop. Nvidia cites strong sales of its high-end GeForce GTX desktop GPUs, Quadro workstation GPUs, and Tesla HPC GPUs. Notebook GPU sales fell slightly due to PC weakness.
- Tegra sales remained under pressure, plunging 37% to $131M. Nvidia is counting on the Tegra 4i (integrated baseband/app processor) and K1 (high-end app processor) to spark a turnaround.
- Gross margin was 54.1%, -130 bps Q/Q but +120 bps Y/Y. Nvidia expects a GM of 52.5% in seasonally weak FQ1. Opex rose 13% Y/Y, easily eclipsing revenue grow of 3%.
- Only $37M was spent on buybacks. Nvidia added $1B to its buyback authorization back in November.
- FQ4 results, PR, CFO commentary
Feb. 12, 2014, 4:26 PM
Feb. 12, 2014, 12:10 AM
Feb. 11, 2014, 5:35 PM
Jan. 16, 2014, 6:25 PM
- Intel (INTC) CFO Stacy Smith on the Q4 CC, discussing enterprise/government demand: "We saw a tapering off in order patterns at certain customers across certain segments. We think that was driven by the government shutdown and uncertainty." Smith also stated a 2H pickup in enterprise IT spend was a little slower than expected.
- Bernstein's Stacy Rasgon, a long-time bear, expressed disappointment over the slowing server CPU division growth Intel reported in Q4 (+8% Y/Y vs. +12% in Q3), and questioned the division's ability to hit an Intel target for low-double digit 2014 growth, especially after sales only rose 3% in 2013.
- CEO Brian Krzanich suggests sales of Intel's Bay Trail Atom CPUs for Android tablet designs won't be significant until Q2. Bay Trail carries much lower ASPs than Intel's Core PC CPUs.
- Intel has fully given back its early 2014 gains. AMD -1.1% AH. NVDA -1.1%.
- More on Intel's earnings
Nov. 7, 2013, 5:35 PM
- Along with its FQ3 results, Nvidia (NVDA) has announced it's adding another $1B to its buyback authorization; the chipmaker now has $1.286B available for buybacks. Nvidia bought back $750M worth of shares earlier this year through a deal with Goldman.
- After rising 7.5% Y/Y in FQ2, Nvidia's GPU division sales fell 2% in FQ3 to $876.8M, as strong Quadro (workstation) and Tesla (server/HPC) GPU sales failed to fully offset PC weakness. Nvidia says GPU sales for PC "gaming platforms" (a high-margin business) remains healthy, but that entry-level notebook GPU shipments fell.
- Tegra division sales totaled $111.2M, up 111% Q/Q thanks to the Tegra 4 ramp and Shield console sales, but down 54% due to tough direct competition from Qualcomm, and tough indirect competition from Apple/Samsung's in-house app processors.
- Gross margin was 55.7%, -60 bps Q/Q and +260 bps Y/Y. GM is expected to slip to 54.5% in FQ4. In spite of a 12.5% Y/Y rev. drop, opex rose 17.6% Y/Y, due largely to a 20% increase in R&D spend to $340.3M (32% of revenue).
- FQ3 results, PR, CFO comments (.pdf)
Nov. 7, 2013, 4:25 PM
Nov. 7, 2013, 12:10 AM
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Nov. 6, 2013, 5:35 PM
- ADES, ADUS, AIRM, AL, ALJ, ANAC, ARAY, AREX, ARNA, ATLS, ATW, AUQ, AVG, BCEI, BEBE, BIO, BNNY, BPZ, CFN, CLNE, CUBE, DAR, DIS, DMD, EAC,EBS, ECPG, ELON, ENOC, EZPW, FEYE, FF, FUEL, FXEN, GERN, GRPN, GXP, HTGC, IL, KRO, KTOS, LCI, LFVN, MCP, MDRX, MITK, MNST, MNTX, MSCC, NES,NFG, NKTR, NOG, NVDA, OCLR, OLED, PCLN, PEGA, PODD, RNDY, SF, SGMS, SLXP, SNTS, SQNM, SWIR, TSRO, TUMI, UBNT, UNXL, VVC, WIFI, WR, WTR, XNPT,XTEX, YRCW
Aug. 9, 2013, 7:11 PM
- Nvidia (NVDA -1.4%) fell only modestly after reporting light guidance to go with an FQ2 beat.
- Healthy GPU sales (+9.3% Q/Q and +7.5% Y/Y to $858.6M) softened the response to nosediving Tegra sales (-49% Q/Q and -70.7% Y/Y to just $52.6M).
- Nvidia, which previously guided for flat FY14 (ends Jan. '14) Tegra sales (a forecast already implying share loss), now thinks sales could fall by $200M-$300M from FY13's $750M.
- On the CC, CEO Jen-Hsun Huang blamed the forecast, which comes as Tegra 4 hardware launches, on poor Windows RT hardware sales. However, Nvidia's dearth of major Android smartphone wins relative to Qualcomm, and Samsung's partial reliance on home-grown CPUs, are also clearly factors.
- Meanwhile, Huang has confirmed reports a Tegra chip will go into the next version of Surface RT, and Chinese sites have published pictures said to depict an Nvidia-made tablet called the Tegra Tab.
- One bright spot: Tesla server GPU sales +25% Q/Q and +128% Y/Y, evidence of strong HPC market demand. Also, Quadro workstation GPUs +9% Q/Q and +14% Y/Y, and desktop GPUs +14% Q/Q and +4% Y/Y (mix shift to high-end). Notebook GPUs -4% Q/Q and -2% Y/Y.
- Given the state of PC sales, the GPU figures point to additional share gains relative to AMD.
- In spite of a 6% Y/Y rev. drop, R&D spend +18% Y/Y to $331.7M. SG&A -10% to $108.3M.
- Previous: Nvidia to license GPU IP for 3rd-party mobile processors
Aug. 8, 2013, 4:27 PM
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