It's been a pretty great week for O2Micro International Limited (NASDAQ:OIIM) shareholders, with its shares surging 10% to US$1.67 in the week since its latest full-year results. Revenues were in line with expectations, at US$61m, while statutory losses ballooned to US$0.19 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether analysts have changed their mind on O2Micro International after the latest results.
After the latest results, the lone analyst covering O2Micro International are now predicting revenues of US$67.6m in 2020. If met, this would reflect a solid 11% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.20 on a statutory basis. Yet prior to the latest earnings, analysts had been forecasting revenues of US$66.5m and losses of US$0.26 per share in 2020. There was no real change to the revenue estimates, but analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.
The average analyst price target held steady at US$9.72, seeming to indicate that business is performing in line with expectations.
Further, we can compare these estimates to past performance, and see how O2Micro International forecasts compare to the wider market's forecast performance. It's clear from the latest estimates that O2Micro International's rate of growth is expected to accelerate meaningfully, with forecast 11% revenue growth noticeably faster than its historical growth of 1.4%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 8.8% next year. O2Micro International is expected to grow at about the same rate as its market, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for next year. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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