Shares of NVIDIA
The graphics-chip stalwart and mobile-processor upstart collected non-GAAP earnings of $0.10 per share, right in line with analyst expectations. On the top line, sales fell 4% year over year to $925 million. The Street would have settled for $916 million.
The results weren't exactly awe-inspiring, but Wall Street wasn't expecting much, either. The revenue consensus sat at the middle of NVIDIA's guidance range for the quarter but the actual results came in near the top of that span. Gross margins were stronger than management had expected, though higher operating expenses stopped the extra cash from reaching the bottom line.
For the next quarter, management expects about $1 billion of revenue -- well ahead of the $976 million Street view and roughly flat from the $1.02. billion reported in last year's second quarter.
CEO Jen-Hsun Huang pins these hopes on the just-launched Kepler line of graphics chips, paired with the equally fresh Ivy Bridge line of notebook processors by Intel
Going even thinner and lighter, the first smartphones based on NVIDIA's Tegra 3 processor started trickling onto the market led by HTC's Android flagship models.
Even after this morning's strong bounce, NVIDIA trades within 18% of 52-week lows. Share prices have fallen 4% in 2012 while arch rival Advanced Micro Devices
Let's just say that you wouldn't overpay for NVIDIA if you bought this mobile winner today. The company plays a leading role in the trillion-dollar mobile computing revolution.