Embattled semiconductor maker NVIDIA
What analysts say:
- Buy, sell, or waffle? Twenty-seven analysts give NVIDIA 12 buy ratings, 14 holds, and one sell.
- Revenue. They expect to see sales slide 20% to $892.4 million.
- Earnings. Profits are predicted to plummet 73% to $0.12 per share.
What management says:
The company enjoyed good news on the litigation front this quarter. In September, NVIDIA announced the settlement of a class action lawsuit involving itself and Advanced Micro Devices
What management does:
None of this will do any good for NVIDIA's margins, of course. Even token settlements will bite into profit margins badly weakened by last quarter's devastating writedowns.
4/07 |
7/07 |
10/07 |
1/08 |
4/08 |
7/08 |
|
---|---|---|---|---|---|---|
Gross |
43.1% |
43.8% |
45.2% |
45.6% |
45.5% |
39.6% |
Operating |
15.3% |
16.7% |
18.9% |
20.4% |
20.4% |
12.8% |
Net |
15.1% |
16.5% |
18.7% |
19.5% |
19.1% |
12.6% |
All data courtesy of Capital IQ, a division of Standard & Poor's. Data reflects trailing-12-month performance for the quarters ended in the named months.
One Fool says:
Focusing on the big picture, though, NVIDIA seems to be cleaning up its messes, both in court and on the manufacturing line. In the short term, these moves cost money and margins and make the company look a whole lot less profitable than it has been in the past. (I firmly believe it will regain those profits.)
Today, NVIDIA sits near the back of the pack of the semiconductor industry, with everyone from Intel
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