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 semiconductor image-sensor company OmniVision Technologies (NASDAQ:OVTI) soared 14% today after its quarterly results and outlook impressed Wall Street.

So what: The stock has rallied sharply in recent months on signs of rebounding demand, and today's fourth-quarter results -- net income spiked 70% on a revenue decline of just 1.6% -- coupled with upbeat guidance only reinforce those good vibes. In fact, gross margin during the quarter increased 260 basis points to 20.1%, suggesting that OmniVision's cost structure and competitive position are improving as well.

Now what: Management now sees current-quarter adjusted earnings per share of $0.43-$0.63 on revenue of $360 million-$400 million, well above the consensus of $0.29 and $305 million. "We have made meaningful progress on multiple fronts, including the diversification of our revenues into multiple geographies, especially in Asia, and the strong growth in our emerging automotive and security markets," said CEO Shaw Hong in a press release. "We are also working on new technologies and applications in our core and emerging markets that have the potential to substantially enhance our market position over the longer term." Of course, with the stock now up about 70% from its 52-week high and trading at a P/E in the mid-teens, I'd wait for a wider margin of safety before betting on those prospects. 

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Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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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