Why OmniVision Shares Shined Brightly
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 OmniVision Technologies (NAS: OVTI) shone bright this morning, up by as much as 12%, before giving up most of those gains after the company reported a solid earnings release. More importantly, however, they said that they expected a very strong quarter in the pipeline.
So what: Revenue in the first quarter of its fiscal 2013 came out to $258.1 million, which turned into adjusted non-GAAP net income of $11.6 million, or $0.21 per share, by the time it reached the bottom line. Sales beat estimates, but earnings fell short; but the real news was in second quarter guidance.
Now what: OmniVision expects next quarter to see sales of between $355 million and $390 million. That's a very solid indication that the company has scored the backside illuminated sensor spot in Apple's (NAS: AAPL) imminent iPhone 5, grabbing the spot back from Sony (NYS: SNE) , and one that investors can bank on. For context, even the low end of that guidance would be the highest the company has ever posted, by about $79 million.
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The article Why OmniVision Shares Shined Brightly originally appeared on Fool.com.Fool contributorEvan Niuowns shares of Apple, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of Apple.Motley Fool newsletter serviceshave recommended creating a bull call spread position in Apple. 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.