OmniVision Tech. Profit Rises, But Stock Down On Weak Q3 Outlook - Update

(RTTNews) - OmniVision Technologies Inc. (OVTI) Tuesday reported an increase in profit for the second quarter, driven largely by growth in sales and gross margins. Both earnings and revenues for the quarter came in ahead of Wall Street analysts' estimates.

Moving ahead, the image sensor maker detailed a weak outlook for the third quarter, sending its shares plunging 13 percent in after-hours trade on the Nasdaq.

CEO Shaw Hong said revenue growth in the second quarter came amid softness in the smartphone market and heightened competition. Hong also cautioned about volatility in its end markets.

Santa Clara, California-based OmniVision's second-quarter profit rose to $26.3 million or $0.47 per share from $10.3 million or $0.19 per share last year.

Excluding items, adjusted earnings for the quarter rose to $0.60 per share from $0.33 per share a year ago. On average, 11 analysts polled by Thomson Reuters expected earnings of $0.43 per share for the quarter. Analysts' estimates typically exclude special items.

OmniVision's revenues for the three-month period grew to $397.25 million from $390.14 million last year. Eleven analysts on a consensus expected revenues of $392.26 million for the quarter.

Gross margin for the quarter advanced to 18.8 percent from 16.6 percent last year, reflecting mainly production cost improvements in high-volume devices.

Looking forward to the third quarter, the company expects net earnings of $0.14 to $0.30 per share, adjusted earnings of $0.28 to $0.44 per share and revenues of $310 million to $340 million. Analysts currently expect earnings of $0.43 per share on revenues of $399.90 million for the third quarter.

OVTI closed Tuesday's trading at $15.99, on a volume of 2.6 million shares. The stock, however, plunged $2.00 or 12.51%, in after-hours trade.