The 10-second takeaway
For the quarter ended Jan. 31 (Q3), OmniVision Technologies beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share grew.
Gross margins dropped, operating margins grew, net margins grew.
OmniVision Technologies logged revenue of $423.5 million. The 12 analysts polled by S&P Capital IQ expected sales of $411.5 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $185.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.42 per share. Non-GAAP EPS of $0.56 for Q3 were 331% higher than the prior-year quarter's $0.13 per share. GAAP EPS of $0.40 for Q3 were much higher than the prior-year quarter's $0.00 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.9%, 730 basis points worse than the prior-year quarter. Operating margin was 5.6%, 530 basis points better than the prior-year quarter. Net margin was 5.0%, 490 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $372.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.42 billion. The average EPS estimate is $1.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 836 members out of 878 rating the stock outperform, and 42 members rating it underperform. Among 169 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 158 give OmniVision Technologies a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on OmniVision Technologies is outperform, with an average price target of $21.20.
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