OmniVision Plummets After Disappointing Guidance (OVTI)

reported positive first-quarter results this afternoon. Unfortunately, the company also announced that it expects to report second-quarter results that are well below expectations. OmniVision's Q1 EPS came to $0.55 (a 162 percent increase over the year-ago period) versus the Street estimate of $0.43. Revenue was slightly below expectations, coming in at $373.7 million versus $376.58 million. Sales were up 45 percent year-over-year. "For the first quarter of fiscal 2014, we are excited to report strong sequential revenue growth in spite of a slowdown in the smartphone market during the second half of the quarter," Shaw Hong, CEO of OmniVision Technologies, said in a

. "Nonetheless, as competition intensified in response to the market slowdown, the forecasts for some of our products were negatively affected and we did not see a sequential improvement in gross margin. We continue to pursue cost reductions across our supply chain, and market diversifications into potential growth areas such as automotive."

OmniVision closed up more than two percent Thursday afternoon. After the firm released its guidance, OmniVision plummeted more than 10 percent. The stock recovered slightly and is currently down roughly nine percent. For the second quarter, OmniVision expects to report an EPS of $0.36 to $0.53 versus the Street's estimate of $0.50. In a way, it almost looks like the company has reversed its performance. OmniVision deftly surpassed expectations during the first quarter. In Q2, the company may be unable to keep up with Wall Street's anticipated earnings. Shares of OmniVision have been slowly declining since the company soared 32 percent during the last week of May. The stock has lost nearly six percent of its value since June 3. Year-to-date, the company is still up more than 20 percent. Disclosure: