O2Micro International Limited Just Released Its Full-Year Earnings: Here's What Analysts Think
Shareholders of O2Micro International Limited (NASDAQ:OIIM) will be pleased this week, given that the stock price is up 10% to US$1.67 following its latest full-year results. It was a pretty bad result overall; while revenues were in line with expectations at US$61m, statutory losses exploded to US$0.19 per share. Following the result, analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
Check out our latest analysis for O2Micro International
After the latest results, the lone analyst covering O2Micro International are now predicting revenues of US$67.6m in 2020. If met, this would reflect a meaningful 11% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to US$0.20 on a statutory basis. Yet prior to the latest earnings, analysts had been forecasting revenues of US$66.5m and losses of US$0.26 per share in 2020. There was no real change to the revenue estimates, but analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.
There's been no major changes to the consensus price target of US$9.72, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation.
In addition, we can look to O2Micro International's past performance and see whether business is expected to improve, and if the company is expected to perform better than wider market. It's clear from the latest estimates that O2Micro International's rate of growth is expected to accelerate meaningfully, with forecast 11% revenue growth noticeably faster than its historical growth of 1.4%p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 8.8% per year. O2Micro International is expected to grow at about the same rate as its market, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The most important thing to note from these estimates is that the consensus increased its forecast losses next year, suggesting all may not be well at O2Micro International. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider market. The consensus price target held steady at US$9.72, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for O2Micro International going out as far as 2021, and you can see them free on our platform here.
You can also see our analysis of O2Micro International's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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