Thursday, July 26, 2012

Making Sense Of InvenSense Earnings

After last quarters disappointing earnings report, this once high flying maker of motion sensing technology dropped 50% to $9. On the previous conference call, InvenSense (INVN) spoke of a bright future amid a hiccup in the supply chain that was limiting the ability of handset makers to utilize the motion sensing technology for 4G LTE phones. Hard to justify the major selloff when the problem was well known to be caused by a major supplier by the name of Qualcomm (QCOM).

Fast forward to Q113 earnings and InvenSense reported numbers slightly above estimates. The company also guided to sequential revenue growth of roughly 40% which should capture investor attention. Not to mention, the results continue to be impacted to the tune of $3-4M by the known issue with 28nm chips provided by Qualcomm.

The absolute performance remains strong, but the question remains whether the relative performance will be enough. The market has a funny way of only being concerned with the comparison to analyst estimates no matter the growth rate or valuation.

Read the full article at Seeking Alpha.


Disclosure: Long AAPL. Please review the disclaimer page for more details. 




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