OmniVision shares fall after earnings disappoint

Shares of OmniVision Technologies Inc. fell Friday, a day after the maker of image sensors posted fiscal fourth-quarter profit that missed Wall Street expectations.

OmniVision's reported net income of $9.1 million, or 17 cents per share, for the quarter ended April 30. The company recorded operating earnings of 27 cents per share.

Analysts polled by Thomson Financial projected earnings of $18 million, or 32 cents per share.

Piper Jaffray analyst Amit Japur, who has a "Neutral" rating and $16 price target on OmniVision, expressed concern that consumers may be shifting to lower-end phones. OmniVision's chips are used in cell phones to take high-resolution photos.

Thomas Weisel Partners' analyst Kevin Cassidy, who has a "Market Weight" rating on shares, lowered his price target and recommended investors remain on the sidelines due to the threat of competition from lower-cost manufacturers.

Jefferies & Co. analyst Adam Benjamin lowered his price target, too. He maintained a "Buy" rating, noting that the company is positioned to benefit from new products using the company's sensors and a shift to megapixel sensors in the second half of the year.

Shares of OmniVision declined 33 cents, or 2 percent, to $16.20. The stock has traded in a 52-week range of $11.50 to $25.17.