OmniVision shares spike after 1Q earnings report

Shares of OmniVision Technologies Inc., soared Friday, even after the maker of imaging sensors for cell phones, camcorders and other gadgets reported quarterly results below analyst expectations.

The stock rebounded from a multiyear low hit shortly after the market opened.

In afternoon trading, shares of OmniVision were up 97 cents, or 9 percent, to $11.81. Earlier in the session, the stock sank to $10.63, its lowest price since 2004.

The Santa Clara, Calif.-based company said late Thursday it earned $6.2 million, or 12 cents per share, in its fiscal first quarter ended July 31.

Excluding some items, the company earned 25 cents per share, 3 cents less than analysts expected, according to a Thomson Reuters survey.

Revenue was $174.3 million, up 3.1 percent from the same quarter last year.

OmniVision forecast earnings for the current quarter of 13 cents to 25 cents per share. Analysts expect profit of 35 cents per share.

"We believe tepid handset demand and competitive challenges will linger" for the rest of the calendar year, wrote Canaccord Adams analyst Bobby Burleson in a morning note. He lowered his share price target to $11 from $16 and kept a "Hold" rating.

At Kaufman Bros., analyst Suji De Silva said he continued to believe the company has a strong competitive position. He lowered his price target to $13 from $18, but noted that the stock is cheap compared with earnings. He kept a "Buy" rating.