Oppenheimer Maintains Perform On OmniVision Technologies Following F2Q15 Results
In a research report sent to investors today, Oppenheimer analyst Andrew Uerkwitz maintained a Perform rating on OmniVision Technologies (NASDAQ:OVTI), following the company’s fiscal second-quarter results, posting EPS of $394M/$0.60, beating the Street’s $378M/$0.51E and Oppenheimer’s $374M/$0.49E. No price target was provided.
Uerkwitz noted, “Our caution toward a weak F2H15 deepens as smartphone products are negatively affected by margin headwind, high inventory in China, and OVTI’s phasing out of Apple. Despite multiple near-term headwinds, OVTI progressed steadily in nonmobile high growth markets such as auto and security, which we believe now contribute a combined 10% of total revenues. We choose to stay sidelined due to near-term weakness and volatility from China.”
The analyst concluded, “We will stay sidelined until multiple headwinds play out in F2H15. Given OVTI’s exposure to Chinese customers, we believe the coming quarters will see increasing volatility from a dynamic competitive landscape and the uncertain timing of low-cost 4G smartphone ramp. We reiterate our near-term negative bias on the entire smartphone supply chain.”
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 5.9% and a 59.1% success rate. Uerkwitz is ranked #970 out of 3393 analysts.