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OmniVision Technologies, Inc. Message Board

  • hageneriksson hageneriksson Aug 29, 2013 7:57 PM Flag

    while investor get things mostly wrong here the stock might still experience heavy pressure tomorrow

    as the guidance indicates the company indeed has been excluded from the upcoming new IPhone launches otherwise a guide down would have been close to impossible regardless what's going on in China and Korea currently. If analysts will point to that issue tomorrow the stock might easily dive 20%.

    on a more positive note earnings were really not that bad. With the market issues well known the company did a good job relative to expectations. EPS was inflated by a huge tax benefit though.

    Gross margins look down but in fact are up nicely but this is masked by higher obsolete inventory write-offs compared to last quarter and will be up again next quarter.

    Bottom line:

    Given the weak end markets the company did well during the quarter - revenue guidance is a disappointment though and will fuel discussion about the company being designed out of some of the new Apple products

    Would expect analysts to hold their ground tomorrow with bullish guys defending the company and the bearish analysts pointing to the weak parts of the report and guidance. The joker will be the analysts' take on the Apple business.

    What might happen tomorrow:

    If the Apple issue won't come up and some analysts defending the stock (as the end market difficulties were well known going into this report) I would expect the stock to close around $17 or even $17.50.

    If the company gets downgraded or analysts pointing explicitly to the loss of the Apple business the stock might dive below $15 - if this happens I would take a long position as the stock is cheap and FY 2014 will see much better margin traction.

28.56-0.05(-0.17%)Oct 9 4:00 PMEDT