Shares of OmniVision Technologies (NASDAQ: OVTI) dropped as much as 10% in today's trading after the company announced earnings yesterday after the bell. The second-quarter numbers came in above analysts' expectations, but according to tech and telecom bureau chief Evan Niu, the key problem was lowered guidance for the third quarter. Headwinds in the smartphone market were partly to blame for the guidance, as 60% of OmniVision's sales come from the mobile phone market. Between slower sales and heavy competition from Sony and Samsung, Evan thinks that OmniVision will have a lot of trouble going forward, and he doesn't think it's a good investment right now.
OmniVision Technologies is down today on bad guidance. Does a cheaper price tag make it a smart investment?
About the Author
Mark Reeth wasn't born incredibly handsome, like so many are--he had to work hard to get to where he is today. Thankfully, through much blood, sweat, and hair products, Mark Reeth is now one incredibly good-looking Consumer Goods Editor. But Mark Reeth wasn't born a Consumer Goods Editor--he started as a writer for Fool.com, became a Blog Editor, and now loves reading all the latest Consumer Goods news. If you want to read all the latest Consumer Goods news, follow him on Twitter @ChristmasReeth.