In other words, just like last Q. Big rev jump, tiny profits. The reason this is falling now is the price targets are 12 months out and no one wants to hold this toad when they can buy it in lower for the next three months.
F2Q13 Results: Solid Beat; Margins Ruin the Party Price: $15.89
Price Target: $23.00
Omnivision beat F2Q expectations and issued very strong F3Q guidance.
F2Q gross margins were weaker than expected, but guidance calls for a
modest sequential improvement in F3Q; very modest. Demand for smartphone
and tablet sensors was robust, evidenced by unit shipments, which increased
~62% y/y to 249mm, and ASPs remained steady at $1.57. In short, a good
quarter was spoiled by gross margins of 16.6%. Reiterate Overweight. Our
Price Target remains $23.00