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NVIDIA (NVDA) Jumps After Upbeat Q2 Revenue Forecast

 May 11, 2012 07:55 AM

(By Balachander) NVIDIA Corp. (NASDAQ:NVDA) shares jumped 8.7 percent in premarket trading on Friday after the graphics and mobile chip maker guided second quarter revenue above market expectations following stronger than forecast first quarter.

On a non-GAAP basis, earnings declined to $97.53 million or $0.16 per share for the first quarter from $165.71 million or $0.27 per share in the year-ago quarter. Analysts expected the company to earn 10 cents a share. GAAP earnings per share (EPS) fell 54.5 percent to 10 cents from 22 cents.

Revenue fell 4 percent to $924 million, yet topped consensus estimate of $916.2 million.

[Related -NVIDIA Corporation (NVDA) Q3 Earnings Preview: Can We See Another Beat?]

Gross margin dropped to 50.4 percent from 50.6 percent on a non-GAAP basis.

Non-GAAP operating expenses jumped 17 percent to about $348 million.

Looking ahead for the second quarter, the company forecasts revenue in the range of $990 million to $1.05 billion, coming in above analysts' expectations of $976.2 million. It expects non-gAAP gross margin is expected to be 51.5 percent, plus or minus one percentage point.

"Kepler GPUs are accelerating our business," said NVIDIA's chief executive Jen-Hsun Huang. "Our newly launched desktop products are winning some of the best reviews we've ever had. Notebook GPUs had a record quarter. And Tegra is on a growth track again, driven by great mobile device wins and the upcoming Windows on ARM launch.

The stock, which has been trading in the 52-week range between $11.47 and $20.52, ended Thursday's regular trading at $12.42.

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