NVIDIA Beats Up on Analysts Yet Again

NVIDIA (Nasdaq: NVDA  ) reported earnings on Feb. 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Jan. 27 (Q4), NVIDIA met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.

Margins increased across the board.

Revenue details
NVIDIA reported revenue of $1.11 billion. The 30 analysts polled by S&P Capital IQ expected a top line of $1.10 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $953.2 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.35. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.29 per share. GAAP EPS of $0.28 for Q4 were 56% higher than the prior-year quarter's $0.18 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 52.9%, 150 basis points better than the prior-year quarter. Operating margin was 16.6%, 320 basis points better than the prior-year quarter. Net margin was 15.7%, 350 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.07 billion. On the bottom line, the average EPS estimate is $0.26.

Next year's average estimate for revenue is $4.52 billion. The average EPS estimate is $1.16.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 5,375 members out of 5,605 rating the stock outperform, and 230 members rating it underperform. Among 1,190 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,160 give NVIDIA a green thumbs-up, and 30 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on NVIDIA is hold, with an average price target of $15.28.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (4) | Recommend This Article (1)

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  • Report this Comment On February 13, 2013, at 9:19 PM, IRunMan wrote:

    Fluff, fluff, formula article. I can't believe TMF allows this to continue for so long!

  • Report this Comment On February 13, 2013, at 9:40 PM, rsinj wrote:

    Nvidia beats up on analysts? Interesting. Here are the headlines I see:

    Nvidia revenue outlook misses, PC and tablet chips slowReuters(Wed 7:55PM EST)

    UPDATE 3-Nvidia revenue outlook misses, PC and tablet chips slowat Reuters(Wed 7:48PM EST)

    Nvidia Forecasts Sales That Fall Short of Analyst Estimatesat Bloomberg(Wed 7:09PM EST)

    BRIEF-NVIDIA says lower outlook reflects slower PC industryat Reuters(Wed 5:41PM EST)

    NVIDIA Earnings: Here’s Why the Stock is Falling Nowat Wall St. Cheat Sheet(Wed 5:39PM EST)

  • Report this Comment On February 14, 2013, at 6:43 AM, philippalmer wrote:

    Rsinj, nvdia beat analysts, just like the article mentioned. All you titles talk about the weak qtr 1 outlook

  • Report this Comment On February 14, 2013, at 8:57 AM, rsinj wrote:

    philppalmer - and who produced the Q1 estimates that Nvidia will not meet? The same analysts, no?

    And what do investors consider more important when looking at the investment prospects of a company - historical earnings, or forward guidance?

    Buy on the rumor, sell on the news.

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