Your email address:

Powered by FeedBlitz

Or add to your news reader: Add to My Yahoo! Add to Google

Wednesday, February 11, 2009

Nvidia (NVDA) 4Q:2009 results

Revenue reported slightly below consensus after pre-announcing what was thought to be a kitchen sink quarter.  Gross margins were well below the street, coming in at 28.4% non-GAAP with the street at 37.5%.  They expect next quarter’s revenues to be flat to up slightly and gross margins in the mid-30s.  Channel inventories have come down substantially to roughly 1 month of inventory on hand.

The Skew:  They’re certainly set up for improvement.  Again, the rate of a recovery is the big question.  While Nvidia’s revenue run rates are likely to bottom out and business can improve from here, the stock at $9 is anticipating that.  I think investors expected a better outlook and the gross margin dip has to give pause.  It’s interesting under $8.

No comments:

Blog Archive