Earnings Beat: O2Micro International Limited (NASDAQ:OIIM) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts
As you might know, O2Micro International Limited (NASDAQ:OIIM) just kicked off its latest quarterly results with some very strong numbers. Revenues and losses per share were both better than expected, with revenues of US$16m leading estimates by 2.8%. Statutory losses were smaller than the analystsexpected, coming in at US$0.06 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for O2Micro International
Following the latest results, O2Micro International's twin analysts are now forecasting revenues of US$68.2m in 2020. This would be a satisfactory 6.9% improvement in sales compared to the last 12 months. Losses are expected to hold steady at around US$0.10. Before this earnings announcement, the analysts had been modelling revenues of US$64.1m and losses of US$0.24 per share in 2020. So it seems there's been a definite increase in optimism about O2Micro International's future following the latest consensus numbers, with a the loss per share forecasts in particular.
Despite these upgrades,the analysts have not made any major changes to their price target of US$10.14, implying that their latest estimates don't have a long term impact on what they think the stock is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that O2Micro International's rate of growth is expected to accelerate meaningfully, with the forecast 6.9% revenue growth noticeably faster than its historical growth of 2.3%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.1% next year. So it's clear that despite the acceleration in growth, O2Micro International is expected to grow meaningfully slower than the industry average.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. The consensus price target held steady at US$10.14, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
Even so, be aware that O2Micro International is showing 3 warning signs in our investment analysis , you should know about...
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