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 (Nasdaq: 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.

Interested in more info on OmniVision? Add it to your watchlist by clicking here.

Fool contributor Evan Niu owns shares of OmniVision Technologies, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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