) is set to report its fourth quarter 2013 results on May 30. In
the prior quarter, the company reported in line with the Zacks
Consensus Estimate. Let's see how things are shaping up for
Growth Factors this Past Quarter
The mobile phone and entertainment markets fueled revenue
growth in the third quarter. It also witnessed strength in 8
megapixel and 5 megapixel sensors due to rapid adoption of smart
OmniVision has leveraged its superior technology to solidify
its position in the handset market and also expanded into other
areas. We like its product roadmap, growth prospects and
management execution and believe that it will be able to deal
with the short product life cycles and temporary slowdown in the
computing and smartphone markets. We are also positive about
design wins at key players, such as Apple which should boost its
growth prospects further.
The Zacks Consensus Estimate for the fourth quarter stands at
8 cents while that for fiscal 2013 is 71 cents.
There were no estimate revisions for both the fourth quarter
and fiscal 2013 over the past 30 days. As a result, the Zacks
Consensus Estimate for both periods remains unchanged.
The chances of a big surprise are unlikely given the lack of
catalysts during the quarter. The stock carries a Zacks Rank #1
We caution against stocks with Zacks Ranks #4 and #5 (Sell
rated stocks) going into the earnings announcement, especially
when the company is seeing negative estimate revisions
Other Stocks to Consider
Our model states that a stock needs to have both a positive
Zacks Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank #1, #2 or #3 to beat earnings estimates. You
could, therefore, consider stocks like:
), Earnings ESP of +3.85% and Zacks Rank #2 (Buy)
Pandora Media Inc.
), Earning ESP of +150.0% and Zacks Rank #2 (Buy)
Webcom Group Inc.
), Earnings ESP of +2.38% and Zacks Rank #3 (Hold)
OMNIVISION TECH (OVTI): Free Stock Analysis
PANDORA MEDIA (P): Free Stock Analysis Report
WEB.COM GROUP (WWWW): Free Stock Analysis
YAHOO! INC (YHOO): Free Stock Analysis Report
To read this article on Zacks.com click here.