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Microvision (MVIS) to Report Q2 Earnings: What's in Store?

Microvision’s MVIS second-quarter 2020 results are expected to reflect decreasing consumer demand due to the coronavirus pandemic.

For the to-be-reported quarter, the Zacks Consensus Estimate for revenues is pegged at $600,000, which indicates a decline of 51.6% from the year-ago reported figure.

Moreover, the consensus mark for second-quarter loss has been steady at a cent in the past 30 days. The company reported a loss of 8 cents in the year-ago quarter.

Q1 at a Glance

In first-quarter 2020, Microvison generated revenues of $1.5 million, down 21.1% from the year ago figure.

Moreover, the company’s net loss came in at 4 cents compared with a loss of 8 cents in the year-ago quarter.

Microvision, Inc. Price and EPS Surprise

 

Microvision, Inc. Price and EPS Surprise

Microvision, Inc. price-eps-surprise | Microvision, Inc. Quote

Factors Likely to Have Impacted Q2

Microvision’s second-quarter performance is expected to have been negatively impacted by the COVID-19-induced fall in consumer demand for its products. Moreover, lower rate of production due to shortage of manufacturing personnel as well as the delayed launch of an OEM product is anticipated to have hurt top-line growth.

Nevertheless, Microvision is expected to have benefited from an agreement with its April 2017 customer to transfer responsibility for component production and to sell production assets without selling any Intellectual Property (IP). Notably, the company has been receiving royalty for each component shipped by the customer, which is likely to have contributed to the top line.

Moreover, the IP includes 450 issued and pending patents as well as other trade secrets and proprietary know-how. These are expected to have boosted revenues in the to-be-reported quarter.

Microvision’s laser beam scanning technology, which is used to manufacture low-cost solid state LiDAR products, is likely to have witnessed momentum on increased demand from OEMs dealing in interactive displays, AR, consumer, and automotive LiDAR products.

Further, the company’s efforts to cut down costs, which include a significant reduction in workforce and suspension of all bonus payments, are expected to have aided margin expansion in the to-be-reported quarter. Also, the surplus cash balance will allow Microvision to pursue strategic transactions like a merger or a sale.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for Microvision this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Microvision has a Zacks Rank #2 and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks you may consider as our proven model shows that these have the right mix of elements to beat estimates this time:

Etsy, Inc. ETSY has an Earnings ESP of +23.66% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Microchip Technology Incorporated MCHP has an Earnings ESP of +2.38% and a Zacks Rank of 1.

Anaplan, Inc. PLAN has an Earnings ESP of +1.64% and a Zacks Rank of 1.

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Microvision, Inc. (MVIS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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