O2Micro International Earnings: Here’s Why the Stock is Down Now

O2Micro International Ltd. (NASDAQ:OIIM) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.63%.

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O2Micro International Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.17 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Decreased 41.73% to $17.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: O2Micro International Ltd. reported adjusted EPS loss of $0.17 per share. By that measure, the company beat the mean analyst estimate of $-0.18. It missed the average revenue estimate of $17.57 million.

Quoting Management: “We are pleased to report a solid quarter with sequential revenue growth,” said Sterling Du, O2Micro’s Chairman and CEO. “Looking forward, customers continue to order conservatively at the lower ranges of lead times and inventories remain very low. We continue to see solid acceptance of our new products in design win activity and we have great confidence in our carefully chosen growth drivers including LED general lighting, backlighting, battery management and power management. We continue to believe that our growth drivers will significantly contribute to revenue and lead to growth in future quarters.”

Key Stats (on next page)…

Revenue increased 2.85% from $16.82 million in the previous quarter. EPS increased to $-0.17 in the quarter versus EPS of $-0.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.14 to a loss $0.15. For the current year, the average estimate has moved down from a loss of $0.49 to a loss of $0.55 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)