Thursday, November 10, 2011

NVIDIA Corporation(Nasdaq: NVDA ): Q3 2012 Earnings Preview

NVIDIA Corporation (Nasdaq: NVDA ) is expected to report its earnings on Nov 10, 2011.

In September, the company issued a strong revenue outlook for full year 2013, which is expected to come in ahead of current Street estimates. However, the company's inventory could be building up due to a weaker-than-expected markets for non-Apple smartphones and tablets. The company's sales also could be hurt by Intel's increasing market share, thanks to strong demand for its Sandy Bridge processors. However, the company's sales could benefit from expanding PC gaming market.

For the third quarter of 2012, I think, the company is likely to report revenue of $1.05 billion, an increase of 24.4 percent over the same quarter a year ago. ?Operating profit is likely to come in at $179.9 million, an increase of 73.3 percent over the same quarter a year ago. Net profit is likely to come in at $156.7 million, compared with $84.9 million in the same quarter a year ago.

Net-on-net, the company is likely to report EPS of $0.26 for Q3 2012, compared with $0.15 in Q3 2011.

I expect the company to provide details on the roadmaproad map for its Tegra chips, including its anticipated T40 and ��Project Denver' parts. I also expect the company to provide details on its upcoming Kal-El chip, which has 4four primary cores and is expected to draw less power than dual-core parts from rivals QCOM and TXN.

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