OmniVision Technologies Earnings: Here’s Why Investors are Happy Now

OmniVision Technologies Inc. (NASDAQ:OVTI) delivered a profit 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 up 21.95%.

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OmniVision Technologies Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 47.62% to $0.31 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Rose 53.83% to $336.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: OmniVision Technologies Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.29. It missed the average revenue estimate of $347.19 million.

Quoting Management: “In fiscal 2013, we completed a record year both in terms of revenues and unit shipments. We are proud to have exceeded a billion dollars in revenues and would like to thank our suppliers, employees and customers,” said Shaw Hong, chief executive officer of OmniVision Technologies, Inc. “We believe that our reported results are beginning to validate our cost reduction efforts, and we will strive to further improve our cost structure.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS decreased 0% from $0.31 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.42 and has not changed. For the current year, the average estimate has moved up from a profit of $1.57 to a profit of $1.59 over the last ninety days.

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