Wedbush Previews NVIDIA's Q4 Results, Expects 'Solid' Beat

Betsy Van Hees of Wedbush on Monday previewed NVIDIA's NVDA upcoming fourth quarter report which is scheduled to be released on Wednesday. "We expect a solid beat primarily driven by strong PC gaming demand, data center strength, and market share gains," Van Hees wrote. The analyst expects the company will report a GAAP earnings per share of $0.30 on revenue of $1.22 billion after previously projecting an earnings per share of $0.28 on revenue of $1.20 billion. Looking forward to the first quarter, Van Hees expects NVIDIA will see typical seasonality in its business, especially PC gaming while the company continues executing on keeping its costs in check. The analyst is guiding the company to earn $0.24 in the coming quarter on revenue of $1.15 billion. Van Hees concludes by stating as shares continue trading near 52-week highs, there likely won't be much reaction off a beat and in-line guide and that the company's upcoming Analyst Day on March 17 won't be a catalyst. In fact, the analyst suggests that shares will trade in a narrow range until mid-June when its patent infringement claim against Samsung and Qualcomm will be heard by the International Trade Commission. Shares are Outperform rated with a $25 price target.