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Can Strong Mobile Market Aid Pixelworks' (PXLW) Q3 Earnings?
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Pixelworks, Inc. (PXLW - Free Report) ) is slated to report third-quarter 2018 results on Nov 1. In the last reported quarter, the company delivered a positive earnings surprise of 100%.
Notably, Pixelworks beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 112.5%.
In the last reported quarter, its revenues of $19.3 million were up more than 20% year over year and also ahead of the company’s guidance. The increase was driven by strong demand in projector and expanding volume shipments in mobile.
For the third quarter, Pixelworks expects revenues in the range of $21-$22 million.
Shares of Pixelworks have lost 36.1% on a year-to-date basis compared with the industry’s decline of 12.6%.
Let’s see how things are shaping up for this announcement.
Growing Digital Projector Market
In the second quarter, Digital Projector revenues grew 31% sequentially. Digital Projector revenues are expected to continue improving in the to-be-reported quarter. The company remains well positioned in the three LCD portions of the projector market and has been making efforts to improve customer relationships, which is a positive indicator.
In addition, it announced multiple wins for the transcoding chips in newly launched OTA devices, which should help expand video delivery revenues in the to-be-reported quarter.
Expanding Mobile Business
In the second quarter, mobile revenues grew 66% sequentially and 29% year over year. The increase was driven by strong volume shipments of both 3rd and 4th generation Iris processors to smartphone OEM customers. Revenues should continue to expand in the quarter to be reported, driven by new multiple wins in this space along with increased pipeline of customer engagements in both mobile and video delivery business.
Earnings Whispers
Our proven model does not show that Pixelworksis likely to beat estimates in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: The company has 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.
Zacks Rank: Pixelworks’ Zacks Rank #3 increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Generac Holdings Inc. (GNRC - Free Report) has an Earnings ESP of +3.19% and a Zacks Rank #1.
Advanced Energy Industries, Inc. (AEIS - Free Report) has an Earnings ESP of +2.70% and holds a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Can Strong Mobile Market Aid Pixelworks' (PXLW) Q3 Earnings?
Pixelworks, Inc. (PXLW - Free Report) ) is slated to report third-quarter 2018 results on Nov 1. In the last reported quarter, the company delivered a positive earnings surprise of 100%.
Notably, Pixelworks beat the Zacks Consensus Estimate in three of the trailing four quarters, delivering an average positive surprise of 112.5%.
In the last reported quarter, its revenues of $19.3 million were up more than 20% year over year and also ahead of the company’s guidance. The increase was driven by strong demand in projector and expanding volume shipments in mobile.
For the third quarter, Pixelworks expects revenues in the range of $21-$22 million.
Shares of Pixelworks have lost 36.1% on a year-to-date basis compared with the industry’s decline of 12.6%.
Let’s see how things are shaping up for this announcement.
Growing Digital Projector Market
In the second quarter, Digital Projector revenues grew 31% sequentially. Digital Projector revenues are expected to continue improving in the to-be-reported quarter. The company remains well positioned in the three LCD portions of the projector market and has been making efforts to improve customer relationships, which is a positive indicator.
In addition, it announced multiple wins for the transcoding chips in newly launched OTA devices, which should help expand video delivery revenues in the to-be-reported quarter.
Expanding Mobile Business
In the second quarter, mobile revenues grew 66% sequentially and 29% year over year. The increase was driven by strong volume shipments of both 3rd and 4th generation Iris processors to smartphone OEM customers. Revenues should continue to expand in the quarter to be reported, driven by new multiple wins in this space along with increased pipeline of customer engagements in both mobile and video delivery business.
Earnings Whispers
Our proven model does not show that Pixelworksis likely to beat estimates in the to-be-reported quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: The company has 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.
Zacks Rank: Pixelworks’ Zacks Rank #3 increases the predictive power of ESP. However, a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
Pixelworks, Inc. Price and EPS Surprise
Pixelworks, Inc. Price and EPS Surprise | Pixelworks, Inc. Quote
Stocks to Consider
You may consider the following stocks with a positive Earnings ESP and a favorable Zacks Rank:
AMETEK, Inc. (AME - Free Report) has an Earnings ESP of +0.71% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Generac Holdings Inc. (GNRC - Free Report) has an Earnings ESP of +3.19% and a Zacks Rank #1.
Advanced Energy Industries, Inc. (AEIS - Free Report) has an Earnings ESP of +2.70% and holds a Zacks Rank #3.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>