Investopedia: OmniVision Hosts A Bear Roast

Whether it is rumors of competitors taking share, products not working as advertised, or financial shenanigans, it seems like there has always been a bear story out there on OmniVision Technologies (Nasdaq:OVTI). Although this company now produces more than five times as much revenue in a single quarter as it did in an entire year in the early 2000s, the stock has constantly chopped up and down - nimble longs and shorts have both made money, but long-term shareholders dating back to 2004 or 2006 are probably wondering whether this stock will ever break out above the $30 share range. 

With OmniVision's latest quarter, and the subsequent barbecuing of the shorts' ribs, maybe the company finally has the momentum on hand to break out.

A Surprisingly Strong Quarter
With a decent string of earnings beats in its recent past, it is not all that surprising that OmniVision reported a good fiscal third quarter. That said, a beat of this magnitude is always a bit startling. Analysts ratcheted up estimates after this company last reported earnings, but did not go quite far enough.

For the quarter, OVTI reported that sales jumped 69% to almost $266 million - handily dusting the Street-high estimate of $248 million. On a sequential basis, the company saw volumes shipped rise almost 5%, while the ASP jumped 6%. The company's mix was also favorable with respect to higher-end products representing a larger share of the pie, though this is not always as favorable as it might sound as lower-end products can actually be quite profitable.


Please read the full article at Investopedia:
http://stocks.investopedia.com/stock-analysis/2011/OmniVision-Hosts-A-Bear-Roast-OVTI-AAPL-SNE-ATML-CY-SLAB-STM0301.aspx