Diamonds and Dogs
The chips are all in. Semiconductor, Nvidia (NVDA) is up 4% to a new 52 week high on better than expected earnings. Revenues rose 23.9% year over year to $1.43 billion. Gross margins improved to 58.1% thanks to strong demand. The company has done well to focus their strategy on creating the future where graphics, computer vision and artificial intelligence converge to fuel growth across specialized platforms like gaming, pro visualization, datacenter and automotive. The stock is up 100% year to date. Not bad.
Concordia International (CXRX) tumbled to the lowest level in more than two years after the drug company slashed its 2016 forecast, suspended its dividend and announced the departure of a key executive amid disappointing second- quarter results. The drugmaker lowered its outlook for 2016 revenue to a range of $859 million to $888 million, compared with the average estimate of about $939 million based on a Bloomberg survey. Concordia's revised forecast for 2016 adjusted earnings before interest, taxes, depreciation and amortization of $510 million to $540 million also falls short of analysts' estimates for about $575 million.