NVIDIA Returns To Profits One Quarter Early (NVDA, AMD)

NVIDIA Corporation (NASDAQ: NVDA) is back to profitability.  Yep, profits. The graphics chipset leader posted $0.07 non-GAAP EPS.  This is down almost half from last year’s $0.13 EPS, but it is significantly better than the Thomson Reuters consensus target of -$0.02 EPS.  Revenue fell to $776.5 million from $892.7 million a year ago, but Thomson Reuters had those targets at $713.6 million.

There is of course a huge difference on GAAP and non-GAAP figures.  This GAAP income for the second quarter was loss of -$105.3 million, or -$0.19 EPS.

The company is now calling for gain of 5% to 7% sequentially for revenues for its Q3 period.  We tally that up to roughly a range of $815.3 million to $830.8 million.  We have Thomson Reuters  estimates pegged at $758 million and the highest estimate seen is $815 million, so this is also above and beyond the consensus..

Be advised that analysts were already calling for a return to profits of $90.03 EPS for the next quarter, so this return to profits on a non-GAAP basis is a quarter ahead of schedule.

Shares have already more than doubled off of lows.  This stock closed down 2% at $13.12 today, but shares are back up to $13.75 in the after-hours session.  The 52-week range is $5.75 to $14.12.

As Advanced Micro Devices, Inc. (NYSE: AMD) is half processor and half graphics chipsets from the ATI acquisition, there might be some secondary action there.

JON C. OGG
AUGUST 6, 2009