On Aug. 9, graphics chip designer and Motley Fool Stock Advisor recommendation NVIDIA
- NVIDIA has enjoyed an extended stay at the top of the graphics-crunching performance charts over archrival ATI, now an AMD
(NYSE:AMD) subsidiary. It shows in the gross margins, and fiscal discipline has preserved that rich lucre all through the income statement. - Given the lush cash balance and overall outstanding financial results, the 4.4% dilution sticks out like a sore thumb. Are you saving up for something special, NVIDIA?
- You may find our Motley Fool CAPS tagging system refreshing and inspiring -- for example, did you know that NVIDIA is one of the highest-rated producers of "products for nerds" alongside Texas Instruments
(NYSE:TXN) ? Apple(NASDAQ:AAPL) , Microsoft(NASDAQ:MSFT) , and iRobot(NASDAQ:IRBT) don't stand a chance in that comparison.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$935 |
$688 |
36% |
|
Net Profit |
$173 |
$87 |
99.1% |
|
EPS |
$0.43 |
$0.22 |
95.5% |
|
Diluted Shares |
402.6 |
385.6 |
4.4% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
45.3% |
42.5% |
2.8 |
|
Operating Margin |
19.8% |
13.9% |
5.8 |
|
Net Margin |
18.5% |
12.6% |
5.9 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,572 |
$851 |
84.7% |
|
Accounts Rec. |
$508 |
$460 |
10.5% |
|
Inventory |
$276 |
$379 |
(27%) |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$323 |
$230 |
40.6% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
The balance sheet reflects the company's health.
Cash Flow Highlights*
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$300 |
$18 |
1576% |
|
Capital Expenditures |
$30 |
$20 |
49.3% |
|
Free Cash Flow |
$270 |
$2 |
N/A |
Free cash flow is a Fool's best friend.
Related Foolish richness:
NVIDIA is a Motley Fool Stock Advisor pick, Microsoft an Inside Value recommendation, and iRobot a bona fide Rule Breaker. Help yourself to a smorgasbord of free 30-day trials to get a taste of what our premium investment services have to offer.
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
At the time of publication, Anders Bylund had no position in any company mentioned except for a few AMD shares. He would like to remind everyone that smorgasbord -- like ombudsman and angstrom -- is originally a Swedish word. Fool rules are here.
