logo
Plus   Neg
Share
Email

OmniVision Shares Surge 12% On Strong Outlook; But Q3 Profit Plunges

Shares of OmniVision Technologies, Inc. (OVTI) surged nearly 12 percent in expended trading on Thursday after the semiconductor company provided earnings and revenue outlook for the fourth quarter, well above Street view.

The company also reported a profit for the third quarter that plunged from last year, reflecting lower margins and revenue decline. Adjusted earnings per share matched analysts' expectations, while quarterly revenues topped their estimates.

"For our third fiscal quarter, we are pleased to report revenues that exceeded the high-end of our guidance. We are also pleased with our latest sensor line-up and we believe we are well-positioned for the consumer product refresh cycle in 2012," CEO Shaw Hong said in a statement.

The Santa Clara, California-based company reported net income of $0.11 million or breakeven per share for the third quarter, sharply down from $44.72 million or $0.75 per share in the prior-year quarter.

Excluding stock-based compensation expenses and related tax effects, adjusted net income for the quarter plunged to $7.40 million or $0.13 per share from $50.99 million or $0.84 per share in the year-ago quarter.

On average, ten analysts polled by Thomson Reuters expected earnings of $0.13 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the quarter dropped to $185.19 million from $265.68 million in the same quarter last year, but topped ten Wall Street analysts' consensus estimate of $175.90 million.

Gross margin for the quarter contracted 560 basis points to 24.2 percent from last year's 29.8 percent.

Looking ahead to the fourth quarter, the company expects adjusted earnings in a range of $0.15 to $0.28 per share, on anticipated revenues between $195 million and $215 million.

Analysts currently expect earnings of $0.10 per share, on revenues of $170.66 million for the fourth quarter.

OVTI closed Thursday's regular trading session at $16.08, up $0.02 or 0.12% on a volume of 4.16 million shares. The surged a further $1.92 or 11.94 in after-hours trading.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The Boeing Company (BA) reported that its first-quarter core earnings per share increased to $3.64 from $2.17, prior year, reflecting strong performance across the company. Core operating earnings improved 35% year-over-year to $2.51 billion from $1.86 billion, previous year. GAAP earnings from operations increased 30% to $2.88 billion. Net earnings improved 57% year-over-year to $2.48 billion. Earnings per share was $4.15 compared to $2.54. Operating cash flow was $3.1 billion for the quarter. Micro-blogging site Twitter Inc. on Wednesday reported a turnaround to profit in the first quarter on strong double-digit revenue growth. This is the company's second quarterly profit. Both revenue and adjusted earnings per share beat analysts' estimates. Twitter's average monthly active users or MAU figure rose 3 percent year-over-year and also increased from the preceding quarter. Shares of Credit Suisse Group AG were gaining around 4 percent in Swiss trading after the banking giant reported Wednesday higher profit in its first quarter, despite lower net interest income. The company said it had planned 2018 to be a year of acceleration in its performance in its 12-quarter restructuring program.
Follow RTT