InvenSense: Our Fear Of Potential Margin Pressure Came To Be With Nightmarish Force, Says Oppenheimer
In a research report sent to investors today, Oppenheimer analyst Andrew Uerkwitz maintained a Perform rating on InvenSense Inc (NYSE:INVN), following the company’s fiscal 2Q15 earnings release. No price target was given.
Uerkwitz said, “INVN reported 2Q15 gross margin of 37%, down 13 points from 1Q15. Although 8 points were attributed to a one-time inventory write-down, winning Apple still results in an ominous margin reset to 46-47% level. We lower our estimates to reflect lower margins, a more rational outlook for the overall handset market and INVN’s market share. While we believe INVN’s market share at AAPL is secure in the medium term, downside from a shrinking Samsung and margin pressure keep us on the sideline.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Andrew Uerkwitz has a total average return of 6.9% and a 63.2% success rate. Uerkwitz has a 28.7% average return when recommending INVN, and is ranked #830 out of 3350 analysts.