Nvidia Corp. (NVDA, Financial), a technology company headquartered in Santa Clara, California, will release its financial results for the second quarter of fiscal 2018 after the market closes on Aug. 10.Ă‚
The chip maker is expected to close the quarter reporting EPS of 70 cents on average. If the company meets expectations, it will represent a 75% upside from the comparable quarter of fiscal 2016.
Source: Yahoo Finance
Analysts’ estimates range between a low of 66 cents and a high of 79 cents.Â
Revenue is expected to come in at $1.96 billion on average, which represents a 37.30% increase from the prior-year quarter.
Source: Yahoo finance
Analysts estimates range between a low of $1.95 billion and a high of $2.04 billion.
As of the first quarter, the company has $6.21 billion in cash and securities, or $10.43 per share. Total debt amounted to $2.21 billion for a debt-equity ratio of 36.06 versus an industry average of 21.82. The company's debt burden is above the industry average, however, with an interest coverage ratio of 87.45, the technology company can easily pay the interest expenses on outstanding debt.
Other indicators of the company’s financial strength, such as its quick ratio of 7.42 and its current ratio of 8.26, suggest Nvidia can easily meet its short-term obligations with its available liquidity and other short-term assets that can be readily converted into cash.
GuruFocus gives Nvidia a financial strength rating of 8 out of 10 and a profitability and growth rating of 8 out of 10.
Nvidia is currently trading around $171.77 per share on the Nasdaq with a market capitalization of $102.07 billion. The price-book (P/B) ratio is 16.63, the price-earnings (P/E) ratio is 57.14 and the EV/Ebitda ratio is 39.98.
When the forward P/E ratio of 50.51 s multiplied by the full-year EPS forecast of $3.1, it yields a value of $156.58 per share. A value of $178.30 per share is yielded when the forward P/E ratio is multiplied by the 2019 EPS forecast of $3.53.
For the coming 12 months period, analysts forecast a 13.90% growth in the company’s earnings. Over the next five year, analysts estimate Nvidia will grow 12.19% per annum.
The current recommendation rating is 2.4 out of a total of 5, and the analysts’ average target price per share is $143.53.
During the second quarter, Ken Fisher (Trades, Portfolio) exited his Nvidia stake.
Disclosure: I have no positions in Nvidia Corp.
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