NVIDIA’s Solid Growth… Maybe Not Enough (NVDA)

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Shares of NVIDIA Corp. (NASDAQ: NVDA) are getting to see some pressure after its earnings report.  The graphics giant reported net income of $176.8 million which generated $0.30 EPS, which compares with income of $132.3 million or $0.22 last year.  On an adjusted basis, its EPS was $0.36.  It posted revenue of $1.15 billion versus $844.3 million in the same quarter last year.   Despite these nice gains in the company’s numbers, First Call had estimates of $0.38 EPS on $1.15 Billion in revenues. 

NVIDIA also shipped 42% more GPU’s this quarter compared to the same quarter a year ago.

Unfortunately, the company has saved its guidance for its conference call.  Shareholders are very nervous ahead of the comments because shares are down over 6% at $20.49 in after-hours trading.  That’s almost 50% lower than its 52-week high of $39.67.

We’ll hold off on passing any final verdict until guidance has been filtered out, but on the surface after a sharp stock drop and all the characteristics of a solid GARP stock this should have probably already been priced in by the market.

Jon C. Ogg
May 8, 2008