) posted 41 cents, vs. 3 cents, second-quarter earnings per share. Needham raised estimates on slightly lower operating expenses.
Analyst Quinn Bolton tells S&P MarketScope he was a little surprised at the movement of shares this morning as investors weigh second-quarter results. He says EPS beat his estimates and revenue was lighter than expected, and that he's surprised that receivables grew $100 million quarter-over-quarter, noting that Nvidia was encouraging folks to buy product late in the quarter.
Bolton raised fiscal year 2006 (January) EPS estimate to $1.50 from $1.37, and fiscal year 2007 forecast to $1.70 from $1.65; he cites higher gross margin and lower operating expenses.
However, he believes management set expectations for the third quarter that may prove too optimistic, so he encourages investors to remain on the sidelines. He kept a hold recommendation on the stock.