OmniVision Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of image sensor specialist OmniVision Technologies (NAS: OVTI) have popped today, enjoying gains north of 16%, after the company reported third-quarter earnings.
So what: This quarter's figures were solid but nothing spectacular, with revenue of $185.2 million and adjusted earnings of $0.13 per share, both of which were mostly in line with what the market was expecting. The real spark was in the upbeat guidance for next quarter.
Now what: OmniVision expects fourth-quarter sales to be in the ballpark of $195 million-$215 million, topping the Street's expectations of a $170 million top line. Shares have been dogged by overwhelming pessimism in recent months as they reached bargain-bin prices low enough to attract famed value investor David Einhorn. The company's second-generation BSI-2 sensors are starting to hit the market, so hopefully the upbeat guidance is a preview of more to come.
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At the time this article was published Fool contributorEvan Niuowns shares of OmniVision Technologies, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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