Can NVIDIA Earnings Get It Off The Floor? (NVDA, AMD)
NVIDIA Corporation (NASDAQ: NVDA) is set to post earnings right after the close today. First Call has estimates pegged at $0.38 EPS on $1.15 Billion in revenues. As far as next quarter, estimates are $0.37 EPS on $1.12 Billion in revenues. For fiscal Jan-2009, the company is expected to post $1.66 EPS on $4.76 Billion in revenues.
Since its last report, earnings estimates have come down from $0.41 EPS for this quarter, and analysts trimmed $0.03 off for next quarter as well. Estimates were taken down $0.10 for fiscal Jan-2009.
Analyst have an average target price of roughly $30.00. Interestingly enough, this was just raised Monday by Wedbush Morgan to a Buy rating and on Tuesday, American Technology Research reiterated its Buy rating.
Options are a bit harder to use today as the stock is right in between fairly wide strike prices, but it looks like options traders are braced for a move of $0.85 to $0.90 in either direction. The short interest data showed 17.75+ million shares short as of the last seen data.
The good news on its chart is that the stock has recovered sharply off of lows, even after a 2.5% drop to $21.45 today. Shares are well above the 50-day moving average of $19.86, and well under the 200-day moving average of $28.57. Its 52-week trading range is $17.31 to $39.67.
It is no secret that right now part of the woes are from Advanced Micro Devices (NYSE: AMD). AMD has been troubled in its processor business, but its ATI Graphics business is a bright sport currently as many believe ATI’s newer Radeon products are winning in sales.
Jon C. Ogg
May 8, 2008