Why OCZ Technology Shares Got Slammed
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 OCZ Technology (NAS: OCZ) have gotten slammed today by as much as 14% after the solid-state drive specialist reported earnings.
So what: It was a mixed report, as the fourth-quarter results fell short of expectations. Revenue jumped to $110.4 million, although the company generated a surprise loss of $0.11 per share when the Street was looking for a profit of $0.09 per share. On the bright side, full-year revenue guidance was fairly strong. OCZ sees fiscal 2013 revenue between $630 million and $700 million, the midpoint of which would be an 80% increase over fiscal 2012.
Now what: Most of this growth is expected to happen in the second half of the year. Analysts were only expecting full-year sales of $513 million. Piper Jaffray is reiterating its overweight rating and whopping $17 price target, expecting upside from demand at Yahoo!. That price target represents over 200% gains from the current price. Looks like investors are focusing on the bottom line miss today, though.
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At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Yahoo!.Motley Fool newsletter serviceshave recommended buying shares of Yahoo!. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
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