Boston, MA 03/03/2014 (wallstreetpr) – Omnivision Technologies, Inc. (NASDAQ:OVTI) was a source of excitement in the last trading session. The stock of the image sensor maker rose more than 10 percent in intraday trading Friday, and managed to settle 6.6 percent up at $17.27. The reason for the exciting rally of the stock was simple – it exceeded Wall Street expectations in its fiscal 2014 third-quarter. But even so, the stock left no doubt that its rise and earnings beating trend has just begun.
That Omnivision Technologies, Inc. (NASDAQ:OVTI) is staring at a brightening future can be seen in the company’s attractive product lineup. At the investor conference call, chief executive Shaw Hong did not mince his words in expressing optimism. Among other products from the company that are fast gaining market traction is PureCel sensor. The technology allows significantly better camera pixel performance, attractive cost and lower power consumption.
These attributes make PureCel the first stop for electronic companies, vying to build the best in class camera performance in their devices. That being the case, Omnivision Technologies, Inc. (NASDAQ:OVTI) is already enjoying and will obviously continue enjoy every bit of this opportunity going forward.
Beating results
Omnivision Technologies, Inc. (NASDAQ:OVTI) has exceeded earnings estimates in recent quarters, especially the previous two quarters were it has beaten estimates by more than 40 percent in each case. Thus, the stock has had very attractive and encouraging short-term trend of exceeding expectations.
In the latest quarter, the company earned 69 cents per diluted share, beating the 35 cents that analysts expected. Although revenue well by 16.9 percent to $352 million, it was still above the $326.63 million that Wall Street predicted. But even more interesting was that the revenue dip didn’t affect the bottom line which rose 23.2 percent.
Strong guidance
Omnivision Technologies, Inc. (NASDAQ:OVTI) has guided that fiscal 2014 fourth quarter will end with revenue in the range of $275 – $305 million. The non-GAAP income per share diluted is expected to be in the range of 19 cents to 35 cents. Yet analysts are expecting revenue of $284.86 million and earnings per share of 22 cents.
Looking at the stock’s short-term earnings history and the fact that its products lineup is increasingly gaining market traction, there is no doubt that Omnivision Technologies, Inc. (NASDAQ:OVTI) will continue rising from here.
