Please ensure Javascript is enabled for purposes of website accessibility

Why O2Micro International Stock Fell Today

By Chris Neiger - Updated Feb 5, 2021 at 2:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors weren't thrilled with the company's fourth-quarter results.

What happened 

The stock of O2Micro International (OIIM -1.22%) fell today after the company reported its fourth-quarter 2020 results. Earnings per share outpaced Wall Street's expectations, but the company's sales during the quarter fell short of analysts' consensus estimate.

The tech stock was down by 11% as of 1:31 p.m. EST on Friday. 

So what 

O2Micro reported fourth-quarter sales of $23.2 million, up 30% year over year, which narrowly missed Wall Street's estimate of $23.3 million. But the company's fully diluted EPS of $0.14 beat the consensus estimate of $0.10. 

A white line graph pointing down on a red background.

Image source: Getty Images.

The company said in a press release that increasing demand for backlighting products and revenue from the company's battery products helped O2Micro grow during the quarter. 

"These factors, along with continued management of operational costs, shows confidence that our business fundamentals are leading O2Micro into sustainable long-term profitability," CEO Sterling Du said in a statement.

But despite the earnings beat and revenue gains, investors weren't happy with the fourth-quarter results overall and pushed the company's share price down today. 

Now what 

Management forecast that first-quarter 2021 revenue will be in the range of $22.3 million to $24.6 million. This would be an increase of about 50% at the midpoint of guidance.

Investors shouldn't be too concerned about the modest share price loss today. The stock has rallied more than 500% over the past 12 months. And with O2Micro expecting more growth in the first quarter, investors may still have more to look forward to from this tech stock. 

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

O2Micro International Limited Stock Quote
O2Micro International Limited
OIIM
$4.05 (-1.22%) $0.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
356%
 
S&P 500 Returns
124%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.