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Immersion (IMMR) to Report Q4 Earnings: What's in Store?

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Zacks Equity Research
·3 min read
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Immersion Corporation IMMR is scheduled to release fourth-quarter 2020 results on Mar 4.

The company projects fourth-quarter revenues to lie between $10.5 million and $11 million, reflecting a year-over-year decline of 4.5-8.7%.

The company anticipates non-GAAP earnings in the band of 27-29 cents per share. The Zacks Consensus Estimate for earnings is pegged at 28 cents, indicating a year-over-year surge of 180%.

Notably, the company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other, the average surprise being 27.8%.

Immersion Corporation Price and Consensus

Immersion Corporation Price and Consensus
Immersion Corporation Price and Consensus

Immersion Corporation price-consensus-chart | Immersion Corporation Quote

In the last reported quarter, Immersion delivered non-GAAP earnings of 15 cents per share, which beat the Zacks Consensus Estimate by 25%. Moreover, the reported figure marked solid improvement from the year-ago quarter’s earnings of a penny.

However, net revenues of $7.6 million slid 28.3% on a year-over-year basis.

Let’s see how things have shaped up prior to the announcement.

Factors to Consider

Immersion’s top line is likely to have been negatively impacted by weak demand across its multiple end markets, including automotive due to the COVID-19 pandemic. In the third quarter, revenues from the automotive segment plunged 42.8% year on year to $911.5 million.

Nonetheless, the company’s efficient cost management is expected to have boosted the bottom line during the period in discussion. Over the past 12 months, Immersion has significantly reduced its non-GAAP operating expenses from $9.1 million in fourth-quarter 2019 to $3.7 million projected for the fourth quarter of 2020.

What Our Model Says

Our proven model does not predict an earnings beat for Immersion this time around. The combination of a positive Earnings ESP, and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Immersion currently carries a Zacks Rank of 3 (Hold) and has an Earnings ESP of 0.00%.

Stocks With Favorable Combinations

Here are some companies, which, per our model, have the right combination of elements to post earnings beats this quarter:

Winnebago Industries, Inc. WGO has an Earnings ESP of +7.69% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The ExOne Company XONE has an Earnings ESP of +27.59% and carries a Zacks Rank of 3, currently.

Gogo Inc. GOGO has an Earnings ESP of +10.00% and carries a Zacks Rank of 3 at present.

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