Can NVIDIA Earnings Get It Off The Floor? (NVDA, AMD)

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NVIDIA Corporation (NASDAQ: NVDA) is set to post earnings right after the close today.  First Call has estimates pegged at $0.38 EPS on $1.15 Billion in revenues.  As far as next quarter, estimates are $0.37 EPS on $1.12 Billion in revenues.  For fiscal Jan-2009, the company is expected to post $1.66 EPS on $4.76 Billion in revenues.

Since its last report, earnings estimates have come down from $0.41 EPS for this quarter, and analysts trimmed $0.03 off for next quarter as well.  Estimates were taken down $0.10 for fiscal Jan-2009.

Analyst have an average target price of roughly $30.00.  Interestingly enough, this was just raised Monday by Wedbush Morgan to a Buy rating and on Tuesday, American Technology Research reiterated its Buy rating.

Options are a bit harder to use today as the stock is right in between fairly wide strike prices, but it looks like options traders are braced for a move of $0.85 to $0.90 in either direction.  The short interest data showed 17.75+ million shares short as of the last seen data.

The good news on its chart is that the stock has recovered sharply off of lows, even after a 2.5% drop to $21.45 today.  Shares are well above the 50-day moving average of $19.86, and well under the 200-day moving average of $28.57.  Its 52-week trading range is $17.31 to $39.67.

It is no secret that right now part of the woes are from Advanced Micro Devices (NYSE: AMD).  AMD has been troubled in its processor business, but its ATI Graphics business is a bright sport currently as many believe ATI’s newer Radeon products are winning in sales.

Jon C. Ogg
May 8, 2008