NVIDIA Running Strong, But No Guidance Until Conference Call (NVDA)

NVIDIA (NASDAQ:NVDA) posted earnings of $0.51 EPS and $935.3 million in revenues.  First Call estimates were $0.43 EPS and $859.9 million revenues.  Non-GAAP gross margin improved to a record 45.6 percent, an increase of 290 basis points from a year ago.  The company did not issue guidance, but will likely give guidance in its conference call.  Next quarter estimates are $0.49 EPS & $939 million revenues and fiscal JAN-2008 estimates are $1.86 EPS & $3.64 Billion revenues.

Jen-Hsun Huang, president and CEO of NVIDIA: "NVIDIA delivered an outstanding quarter, with record revenue, record gross margin, and record net income. These results reflect the growing importance of the GPU as well as great execution across the company.  Our ongoing strategy to extend the reach of the GPU is paying off. There is a fast-growing universe of applications that rely on the processing capability of the GPU, from 3D design and styling tools, video and photo editing software, 3D maps, and video games, to the user interfaces of the Mac and Vista. The GPU can surely enhance the computing experience for everyone, from artists, engineers, and scientists, to gamers and everyday PC users."

NVIDIA’s short interest in July was listed as 22.855 million shares.  Shares closed up over 1% at $46.13 on a day when the broader market would have dictated a higher chance for a loss.  Shares are initially up 3% atr $47.50 in after-hours trading and initially traded up a bit more than that.  $47.93 is the company’s 52-week and all-time high.

Until we have guidance from a conference call or see the reaction, this is an incomplete report.

Jon C. Ogg
August 9, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.