Why Omnivision Technologies, Inc. Shares Popped Today

What: Shares of Omnivision Technologies, (NASDAQ: OVTI  ) rose more than 10% during Friday's intraday trading, then settled to close up 6.6% after the digital imaging specialist released better-than-expected fiscal third-quarter 2014 results.

So what: Though Omnivision's quarterly revenue fell 16.9% year over year, to $352 million, it translated to 23.2% growth in adjusted net income, to $0.69 per diluted share. Analysts, on average, were looking for earnings of just $0.35 per share on sales of $326.63 million.

For the current quarter, Omnivision expects revenue of $275 million to $305 million, and non-GAAP net income per diluted share between $0.19 and $0.35. Analysts were modeling fiscal fourth-quarter earnings of $0.22 per share on sales of $284.86 million.

Now what: OmniVision CEO Shaw Hong expressed optimism for his company's prospects, pointing to its PureCel sensors, which are "gaining traction in the market. PureCel sensors have significantly better pixel performance, lower power consumption, and an attractive cost structure. We are very excited about our new product lineup."

Omnivision's top line may be headed in the wrong direction, but today's results are encouraging nonetheless. I'm not personally compelled enough to dive in today, but with shares trading at just 0.6 times sales and only 12 times next year's estimated earnings, OmniVision stock might just be able to continue rising from here.

The three stocks in this free report could ensure your comfortable retirement
But that also doesn't mean there aren't other great stocks out there long-term investors. It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2860092, ~/Articles/ArticleHandler.aspx, 10/23/2014 2:09:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement