OmniVision shares rise after posting 4Q profit, revenue jumps 76 pct

OmniVision shares rise after posting improved 4Q

PHILADELPHIA — Shares of OmniVision Technologies Inc. rose Friday after posting a profit for the fiscal fourth quarter on a 76 percent jump in sales.

THE SPARK: OmniVision, which makes chips for digital cameras and cell phones, earned $3.5 million, or 7 cents per share, compared with a loss of $20.1 million, or 40 cents per share, during the same period last year. Revenue jumped 76 percent to $157.2 million.

Excluding one-time items, the company said it earned 18 cents per share. Analysts polled by Thomson Reuters expected net income of 17 cents per share on revenue of $154.6 million.

THE BIG PICTURE: An improving economy will lead to better demand for consumer electronic products, which should help lift sales at OmniVision.

THE ANALYSIS: Standard & Poor’s analyst Clyde Montevirgen noted that OmniVision’s fiscal fourth quarter generated much higher average selling prices than expected. Moreover, the company is showing improving sales trends for higher-end sensors.

He raised his recommendation of the stock to “hold” from “sell.” He also increased his fiscal 2011 earnings estimate by 22 cents per share to 64 cents per share and hiked his 12-month price target by $5 to $21.

OmniVision’s shares rose $1.06, or 5.8 percent, to end Friday at $19.28.